On October 1, Ramos Co. signed a $90,000, 60-day discounted note at the bank. The discount rate was 6%, and the note was paid on November 30. (Assume a 360-day year is used for interest calculations.) a. Journalize the entries for October 1 and November 30. If an amount box does not require an entry, leave it blank. When required, round your answers to the nearest dollar. Oct. 1 Nov. 30 b. Assume that Ramos Co. signed a 6% interest-bearıng note. Journalize the entries for October 1 and November 30 assuming the note was not discounted. If an amount box does not require an entry, leave it blank. Oct. 1 Nov. 30
On October 1, Ramos Co. signed a $90,000, 60-day discounted note at the bank. The discount rate was 6%, and the note was paid on November 30. (Assume a 360-day year is used for interest calculations.) a. Journalize the entries for October 1 and November 30. If an amount box does not require an entry, leave it blank. When required, round your answers to the nearest dollar. Oct. 1 Nov. 30 b. Assume that Ramos Co. signed a 6% interest-bearıng note. Journalize the entries for October 1 and November 30 assuming the note was not discounted. If an amount box does not require an entry, leave it blank. Oct. 1 Nov. 30
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![**Journal Entry Exercise: Discounted and Interest-Bearing Notes**
**Scenario:**
On October 1, Ramos Co. signed a $90,000, 60-day discounted note at the bank. The discount rate was 6%, and the note was paid on November 30. Assume a 360-day year is used for interest calculations.
**Tasks:**
**a. Journalize the entries for October 1 and November 30 for the discounted note.**
- Note: If an amount box does not require an entry, leave it blank. Round answers to the nearest dollar.
- **October 1**
- [Dropdown for account selection] [Amount box]
- [Dropdown for account selection] [Amount box]
- **November 30**
- [Dropdown for account selection] [Amount box]
- [Dropdown for account selection] [Amount box]
**b. Assume instead that Ramos Co. signed a 6% interest-bearing note. Journalize the entries for October 1 and November 30 assuming the note was not discounted.**
- Note: If an amount box does not require an entry, leave it blank.
- **October 1**
- [Dropdown for account selection] [Amount box]
- [Dropdown for account selection] [Amount box]
- **November 30**
- [Dropdown for account selection] [Amount box]
- [Dropdown for account selection] [Amount box]
**Explanation:**
This exercise provides practice in journalizing transactions involving both discounted and interest-bearing notes. Participants must select the correct accounts and calculate the appropriate amounts to record each transaction effectively. Use the given interest rate and note amount to determine the entries.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9a302e4e-684d-4b23-bf03-a90dbd6734f2%2Fa5b689a8-b488-4b65-9c67-a8101c405c8b%2Flcs577e_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Journal Entry Exercise: Discounted and Interest-Bearing Notes**
**Scenario:**
On October 1, Ramos Co. signed a $90,000, 60-day discounted note at the bank. The discount rate was 6%, and the note was paid on November 30. Assume a 360-day year is used for interest calculations.
**Tasks:**
**a. Journalize the entries for October 1 and November 30 for the discounted note.**
- Note: If an amount box does not require an entry, leave it blank. Round answers to the nearest dollar.
- **October 1**
- [Dropdown for account selection] [Amount box]
- [Dropdown for account selection] [Amount box]
- **November 30**
- [Dropdown for account selection] [Amount box]
- [Dropdown for account selection] [Amount box]
**b. Assume instead that Ramos Co. signed a 6% interest-bearing note. Journalize the entries for October 1 and November 30 assuming the note was not discounted.**
- Note: If an amount box does not require an entry, leave it blank.
- **October 1**
- [Dropdown for account selection] [Amount box]
- [Dropdown for account selection] [Amount box]
- **November 30**
- [Dropdown for account selection] [Amount box]
- [Dropdown for account selection] [Amount box]
**Explanation:**
This exercise provides practice in journalizing transactions involving both discounted and interest-bearing notes. Participants must select the correct accounts and calculate the appropriate amounts to record each transaction effectively. Use the given interest rate and note amount to determine the entries.
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