Notes Payable A business issued a 90-day, 8% note for $52,000 to a creditor for an accounts payable. Illustrate the effects on the accounts and financial statements of recording (a) them ssuance of the note and (b) the payment of the note at maturity, including interest. Ef no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. a. Illustrate the effects on the accounts and financial statements of recording the issuance of the note. Balance Sheet Liabilities Assets + Stockholders' Equity + Statement of Cash Flows Income Statement b. Illustrate the effects on the accounts and financial statements of recording the payment of the note at maturity, including interest. Assume a 360-day year. If required, round interest expense to the nearest whole number. Balance Sheet Liabilities Assets Stockholders' Equity Statement of Cash Flows Income Statement

Notes Payable A business issued a 90-day, 8% note for $52,000 to a creditor for an accounts payable. Illustrate the effects on the accounts and financial statements of recording (a) them ssuance of the note and (b) the payment of the note at maturity, including interest. Ef no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. a. Illustrate the effects on the accounts and financial statements of recording the issuance of the note. Balance Sheet Liabilities Assets + Stockholders' Equity + Statement of Cash Flows Income Statement b. Illustrate the effects on the accounts and financial statements of recording the payment of the note at maturity, including interest. Assume a 360-day year. If required, round interest expense to the nearest whole number. Balance Sheet Liabilities Assets Stockholders' Equity Statement of Cash Flows Income Statement

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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