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Ramsey Company issues an $550,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 4%.   Required: A. Journalize Ramsey’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the issuance of the note on January 1. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Buckner’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the receipt of the note on January 1. 2. the receipt of the payment of the note at maturity. Assume a 360-day year.

Ramsey Company issues an $550,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 4%.   Required: A. Journalize Ramsey’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the issuance of the note on January 1. 2. the payment of the note at maturity. Assume a 360-day year. B. Journalize Buckner’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles): 1. the receipt of the note on January 1. 2. the receipt of the payment of the note at maturity. Assume a 360-day year.

College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
ChapterD: Notes Payable And Notes Receivable
Section: Chapter Questions
Problem 3P
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Ramsey Company issues an $550,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 4%.
  Required:
A. Journalize Ramsey’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles):
1. the issuance of the note on January 1.
2. the payment of the note at maturity. Assume a 360-day year.
B. Journalize Buckner’s entries to record (refer to the company’s Chart of Accounts for exact wording of account titles):
1. the receipt of the note on January 1.
2. the receipt of the payment of the note at maturity. Assume a 360-day year.
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