Bull City Industries is considering issuing a $100,000, 7% note to a creditor on account.Required:a. If the note is issued with a 45-day term, journalize the entries to record (refer to the company's Chart of Accounts for exact wording ofaccount titles):1. the issuance of the note.2. the payment of the note at maturity. Assume a 360-day year.b. If the note is issued with a 90-day term, journalize the entries to record (refer to the company's Chart of Accounts for exact wording ofaccount titles):1. the issuance of the note.2. the payment of the payment of the note at maturity. Assume a 360-day year.

a. Following are the journal entry when note is issued with a 45-day term:

Answered: Bull City Industries is considering…

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 2P

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