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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

Bull City Industries is considering issuing a $100,000, 7% note to a creditor on account.

  1. a. If the note is issued with a 45-day term, journalize the entries to record:
  2. 1. the issuance of the note.
  3. 2. the payment of the note at maturity.
  4. b. If the note is issued with a 90-day term, journalize the entries to record:
  5. 1. the issuance of the note.
  6. 2. 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

($)

Acc...

b.1

To determine

To journalize: Issuance of the note.

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