Chapter 9, Problem 17AE

Accounting for notes payable (Learning Objective 2) 5-10 min.

Record the following note payable transactions of Concilio Corp. in the company’s journal. Round intermediate interest calculations to the nearest cent and final amounts to the nearest dollar. Explanations are not required.

2018
Sep 1	Purchased equipment costing $40,000 by issuing a one-year, 8% note payable.
Dec 31	Accrued interest on the note payable.
2019
Sep 1	Paid the note payable at maturity.