Notes Payable A business issued a 90-day, 9% note for $37,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording (a) the issuance of the note and (b) the payment of the note at maturity, including interest. If 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 Statement of Stockholders' Income Assets Liabilities Equity Statement Cash Flows No effect Accounts payable Notes payable No effect %3D 833 X 37,000 V Income Statement Statement of Cash Flows No effect No effect 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 Income Statement of Cash Liabilities Stockholders' Equity Assets %3D Statement Flows Cash = Notes payable Retained earnings %3D 37,000 x 37,000 x 37,000 x Income Statement Statement of Cash Flows Previous Next Check My Work Email Instructor Save and Exit Submit Assignment for Grac All work saved. 65°F Sunny A @ 40 G 3:07 F D.

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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Notes Payable issued a 90-day, 9% note for 37,000 to a creditor on account the effects on the accounts and financial statements of recording () the issuance of the note and (b) the paymen at maturityincluding interest no account or activity is affected, select No effectfrom the dropdown list and leave the corresponding number entry box blankEnter account decreases and cash as negative amounts a. Illustrate the effects on the accounts and financial statements of recording the issuance of the note

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Notes Payable
A business issued a 90-day, 9% note for $37,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording (a) the issuance of the note and (b) the payment of the note
at maturity, including interest.
If 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
Stockholders'
Income
Statement of
Assets
Liabilities
+
Cash Flows
Equity
Statement
No effect
Accounts payable
Notes payable
No effect
%3D
833
37,000
Income Statement
Statement of Cash Flows
No effect
No effect
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
Income
Statement of Cash
Stockholders' Equity
Assets
Liabilities
Statement
Flows
Retained earnings
Cash
= Notes payable
37,000 x
37,000 x
37,000 x
Income Statement
Statement of Cash Flows
Previous
Next
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Email Instructor
Save and Exit
Submit Assignment for Gradim
All work saved.
65°F Sunny ^O 4) G 3:07 PM

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