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Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094

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BuyFindarrow_forward

Accounting

27th Edition
WARREN + 5 others
ISBN: 9781337272094
Textbook Problem

Entries for notes payable

Cosimo Enterprises issues a $260,000, 45-day, 5% note to Dixon Industries for merchandise inventory.

  1. a. journalize Cosimo Enterprises' entries to record:
    1. 1. the issuance of the note.
    2. 2. the payment of the note at maturity.
  2. b. journalize Dixon Industries' entries to record:
    1. 1. the receipt of the note.
    2. 2. the receipt of the payment of the note at maturity.

 a. 1

To determine

Note Payable: Note payable is an obligation of the business to pay to its creditors, in future for the benefits received that carry some interest.

To journalize: Issuance of the note.

Explanation

Journalize the entry to record the issuance of the note.

Date Account Title and Explanation

Post

Ref.

Debit

($)

Credit

($)

Merchandise In...

b. 1

To determine

To journalize: Receipts of notes.

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