Entries for Discounting Notes Payable Ramsey Company issues an $372,000, 30-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 7%. Assume a 360-day year. For a compound transaction, if an amount box does not require an entry, leave it blank. a. Journalize Ramsey's entries to record: 1. the issuance of the note. 2. the payment of the note at maturity. 1. 2. b. Journalize Buckner's entries to record: 1. the receipt of the note. 2. the receipt of the payment of the note at maturity. 1. 2.
Entries for Discounting Notes Payable Ramsey Company issues an $372,000, 30-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 7%. Assume a 360-day year. For a compound transaction, if an amount box does not require an entry, leave it blank. a. Journalize Ramsey's entries to record: 1. the issuance of the note. 2. the payment of the note at maturity. 1. 2. b. Journalize Buckner's entries to record: 1. the receipt of the note. 2. the receipt of the payment of the note at maturity. 1. 2.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter10: Liabilities: Current, Installment Notes, And Contingencies
Section: Chapter Questions
Problem 20E: Entries for installment note transactions On January 1, 20Y2, Hebron Company issued a 175,000,...
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Transcribed Image Text:Entries for Discounting Notes Payable
Ramsey Company issues an $372,000, 30-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 7%.
Assume a 360-day year. For a compound transaction, if an amount box does not require an entry, leave it blank.
a. Journalize Ramsey's entries to record:
1. the issuance of the note.
2. the payment of the note at maturity.
1.
2.
b. Journalize Buckner's entries to record:
1. the receipt of the note.
2. the receipt of the payment of the note at maturity.
1.
2.
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