On May 16, 20X1, Safeway Company received a 90-day, 10 percent, $7,000 interest-bearing note from Black Company in settlement of Black's past-due account. On June 30, Safeway discounted this note at Fargo Bank and Trust. The bank charged a discount rate of 15 percent. On August 14, Safeway received a notice that Black had paid the note and the interest on the due date. Required: Prepare the entries in general journal form to record these transactions. Analyze: If the company prepared a balance sheet on July 31, 20X1, how should Notes Receivable-Discounted be presented on the statement? Complete this question by entering your answers in the tabs below. General Journal Analyze Prepare the entries in general journal form to record these transactions. (Use 360 days a year. Round your intermediate calculations and final answers to 2 decimal places.) View transaction list Journal entry worksheet 1 2 Record entry for a 90-day, 10% note accepted for past-due account. Date May 16, 20X1 3 Note: Enter debits before credits. Record entry General Journal Clear entry >

On May 16, 20X1, Safeway Company received a 90-day, 10 percent, $7,000 interest-bearing note from Black Company in settlement of Black's past-due account. On June 30, Safeway discounted this note at Fargo Bank and Trust. The bank charged a discount rate of 15 percent. On August 14, Safeway received a notice that Black had paid the note and the interest on the due date. Required: Prepare the entries in general journal form to record these transactions. Analyze: If the company prepared a balance sheet on July 31, 20X1, how should Notes Receivable-Discounted be presented on the statement? Complete this question by entering your answers in the tabs below. General Journal Analyze Prepare the entries in general journal form to record these transactions. (Use 360 days a year. Round your intermediate calculations and final answers to 2 decimal places.) View transaction list Journal entry worksheet 1 2 Record entry for a 90-day, 10% note accepted for past-due account. Date May 16, 20X1 3 Note: Enter debits before credits. Record entry General Journal Clear entry >

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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