Rinetti's Course Design Inc. borrowed $850,000 on a 90-day note from CorpOne Funding Company. CorpOne discounts the note at 8%. (Assume a 360-day year is used for interest calculations.) (a) Journalize Rinetti’s Golf entries to record: a. The issuance of the note. b. The payment of the note at maturity. (b) Journalize CorpOne’s entries to record: a. The receipt of the note. b. The receipt of the payment of the note at maturity.
Rinetti's Course Design Inc. borrowed $850,000 on a 90-day note from CorpOne Funding Company. CorpOne discounts the note at 8%. (Assume a 360-day year is used for interest calculations.) (a) Journalize Rinetti’s Golf entries to record: a. The issuance of the note. b. The payment of the note at maturity. (b) Journalize CorpOne’s entries to record: a. The receipt of the note. b. The receipt of the payment of the note at maturity.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Rinetti's Course Design Inc. borrowed $850,000 on a 90-day note from CorpOne Funding Company. CorpOne discounts the note at 8%. (Assume a 360-day year is used for interest calculations.)
(a) | Journalize Rinetti’s Golf entries to record: |
a. | The issuance of the note. |
b. | The payment of the note at maturity. |
(b) | Journalize CorpOne’s entries to record: |
a. | The receipt of the note. |
b. | The receipt of the payment of the note at maturity. |
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