Entries for Discounted Note PayableA business issued a 60-day note for $60,000 to a bank. The note was discounted at 8%. Assume a 360-day year.a. Journalize the entry to record the issuance of the note. For a compound transaction, if an amount box does not require an entry, leave it blank.Cash ✔0✔Interest Expense✔Notes Payable ✔Feedback000600,000 XCheck My Worka. Why is the company issuing the note? What type of note is being issi(interest-bearing or discounted)? Hot much will the company owe on the maturity date?b. Journalize the entry to record the payment of the note at maturity. If an amount box does not require an entry, leave it blank.Notes Payable ✓✔0 ✓Cash

Liability is what a company owes to outsiders. If the liability is held for less than one year than…

A business issued a 60-day note for $60,000 to a bank. The note was discounted at 8%. Assume a 350-day year. a. Journalize the entry to record the issuance of the note. For a compound transaction, if an amount box does not require an entry, leave it Cash ✔ EQ Interest Expense Notes Payable ✔ 0 ✓ 600,000 X

A business issued a 60-day note for $60,000 to a bank. The note was discounted at 8%. Assume a 350-day year. a. Journalize the entry to record the issuance of the note. For a compound transaction, if an amount box does not require an entry, leave it Cash ✔ EQ Interest Expense Notes Payable ✔ 0 ✓ 600,000 X

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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Entries for discounted note payable A business issued a 60-day note for $48,000 to a bank. The note was discounted at 7%. Assume a 360 days in a year. Question Content Area a. Journalize the entry to record the issuance of the note. If an amount box does not require an entry, leave it blank. If necessary, round your answers to one decimal place. blank Account Debit Credit - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area b. Journalize the entry to record the payment of the note at maturity. If an amount box does not require an entry, leave it blank. blank Account Debit Credit - Select - - Select - - Select - - Select -
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