On March 1, LGE asks to extend its past-due $3,200 account payable to Tyson. Tyson agrees to accept $700 cash and a 180-day, 8%, $2,500 note payable to replace the account payable. Note: Use 360 days a year. (1) Prepare the March 1 entry for LGE. (2) Prepare the August 28 entry for LGE when it pays the note and interest to Tyson. View transaction list Journal entry worksheet 1 2 Record LGE's entry to extend its past-due $3,200 account payable by paying cash of $700 and issuing a 180-day, 8 %, $2,500 note payable. Note: Enter debits before credits. Date March 01 Record entry General Journal Clear entry Debit Credit View general journal

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On March 1, LGE asks to extend its past-due $3,200 account payable to Tyson. Tyson agrees to accept $700 cash and a 180-day, 8%,
$2,500 note payable to replace the account payable.
Note: Use 360 days a year.
(1) Prepare the March 1 entry for LGE.
(2) Prepare the August 28 entry for LGE when it pays the note and interest to Tyson.
View transaction list
Journal entry worksheet
1
2
Record LGE's entry to extend its past-due $3,200 account payable by paying
cash of $700 and issuing a 180-day, 8 %, $2,500 note payable.
Note: Enter debits before credits.
Date
March 01
Record entry
General Journal
Clear entry
Debit
Credit
View general journal
>
Transcribed Image Text:On March 1, LGE asks to extend its past-due $3,200 account payable to Tyson. Tyson agrees to accept $700 cash and a 180-day, 8%, $2,500 note payable to replace the account payable. Note: Use 360 days a year. (1) Prepare the March 1 entry for LGE. (2) Prepare the August 28 entry for LGE when it pays the note and interest to Tyson. View transaction list Journal entry worksheet 1 2 Record LGE's entry to extend its past-due $3,200 account payable by paying cash of $700 and issuing a 180-day, 8 %, $2,500 note payable. Note: Enter debits before credits. Date March 01 Record entry General Journal Clear entry Debit Credit View general journal >
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