Problem 2- Journal Entry for Note PayableA) On November 1, California Cruising borrows $3 million and issues a 6month, 5% Note Payable. Interest is due at maturity. Record theacceptance of the note.CreditShow Transcribed TextJCDebitB) Now record the appropriate Adjusting Entry for this Note Payable forinterest owed December 31st, the end of the accounting period. TwomonthsDebitCreditProblem 3- Journal Entry for Note Receivable - you are on the other sideof the transaction.A) On November 1, California Business Bank lends $3 million andaccepts a 6 month, 5% Note Receivable. Interest is due at maturity.Record the acceptance of the note.DebitCreditB) Now record the appropriate Adjusting Entry for this Note Receivablefor interest owed December 31st, the end of the accounting period.Again, 2 months.DebitCredit

The terms note receivable and note payable is a relative term. A note receivable is a note payable…

Problem 2- Journal Entry for Note Payable A) On November 1, California Cruising borrows $3 million and issues a 6 month, 5% Note Payable. Interest is due at maturity. Record the acceptance of the note. Debit Credit

Problem 2- Journal Entry for Note Payable A) On November 1, California Cruising borrows $3 million and issues a 6 month, 5% Note Payable. Interest is due at maturity. Record the acceptance of the note. Debit Credit

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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Question

Problem 2- Journal Entry for Note Payable
A) On November 1, California Cruising borrows $3 million and issues a 6
month, 5% Note Payable. Interest is due at maturity. Record the
acceptance of the note.
Credit
Show Transcribed Text
J
C
Debit
B) Now record the appropriate Adjusting Entry for this Note Payable for
interest owed December 31st, the end of the accounting period. Two
months
Debit
Credit
Problem 3- Journal Entry for Note Receivable - you are on the other side
of the transaction.
A) On November 1, California Business Bank lends $3 million and
accepts a 6 month, 5% Note Receivable. Interest is due at maturity.
Record the acceptance of the note.
Debit
Credit
B) Now record the appropriate Adjusting Entry for this Note Receivable
for interest owed December 31st, the end of the accounting period.
Again, 2 months.
Debit
Credit

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