Journalize the following entries on the books of the borrower and creditor. Label accordingly. (Assume a 360-day year is used for interest calculations.)Jun. 1James Co. purchased merchandise on account from O’Leary Co., $90,000, terms n/30.Jun. 30James Co. issued a 60-day, 5% note for $90,000 on account.Aug. 29James Co. paid the amount due.

Every company will operate to increase the profitability of the company. The profitability of the…

Answered: Journalize the following entries on the…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 16Q: Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual...

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Journalize the following entries on the books of the borrower and creditor. Label accordingly. (Assume a 360-day year is used for interest calculations.)

Jun. 1	James Co. purchased merchandise on account from O’Leary Co., $90,000, terms n/30.
Jun. 30	James Co. issued a 60-day, 5% note for $90,000 on account.
Aug. 29	James Co. paid the amount due.

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