On December 16, Charlotte's Cookies signed a $27,000, 75-day, 9% note payable to cover a past due account payable. Show your calculations for credit. 1. Prepare Charlotte's journal entry to record the issuance of the note payal on December 16. 2. Prepare Charlotte's adjusting journal entry at the end of the year, December 31. 3. Prepare Charlotte's journal entry to record the payment of the note on March 1 of the following year.
On December 16, Charlotte's Cookies signed a $27,000, 75-day, 9% note payable to cover a past due account payable. Show your calculations for credit. 1. Prepare Charlotte's journal entry to record the issuance of the note payal on December 16. 2. Prepare Charlotte's adjusting journal entry at the end of the year, December 31. 3. Prepare Charlotte's journal entry to record the payment of the note on March 1 of the following year.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:On December 16, Charlotte's Cookies signed a $27,000, 75-day, 9% note
payable to cover a past due account payable.
Show your calculations for credit.
1. Prepare Charlotte's journal entry to record the issuance of the note payable
on December 16.
2. Prepare Charlotte's adjusting journal entry at the end of the year,
December 31.
3. Prepare Charlotte's journal entry to record the payment of the note on
March 1 of the following year.
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