# Entries for notes payable Bull City Industries is considering issuing a $100,000, 7% note to a creditor on account. a. If the note is issued with a 45-day term, journalize the entries to record: 1. the issuance of the note. 2. the payment of the note at maturity. b. If the note is issued with a 90-day term, journalize the entries to record: 1. the issuance of the note. 2. the payment of the note at maturity. BuyFindarrow_forward ### Financial Accounting 15th Edition Carl Warren + 2 others Publisher: Cengage Learning ISBN: 9781337272124 #### Solutions Chapter Section BuyFindarrow_forward ### Financial Accounting 15th Edition Carl Warren + 2 others Publisher: Cengage Learning ISBN: 9781337272124 Chapter 11, Problem 7E Textbook Problem 38 views ## Entries for notes payableBull City Industries is considering issuing a$100,000, 7% note to a creditor on account. a. If the note is issued with a 45-day term, journalize the entries to record: 1. the issuance of the note. 2. the payment of the note at maturity. b. If the note is issued with a 90-day term, journalize the entries to record: 1. the issuance of the note. 2. the payment of the note at maturity.

a.1

To determine

Journalize issuance of the note.

### Explanation of Solution

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.

Journalize the entry to record the issuance of the note.

 Date Account Title and Explanation Post Ref. Debit ($) Credit ($)

a.2

To determine

Journalize the payment of note at maturity.

b.1

To determine

Journalize issuance of the note.

b.2

To determine

Journalize the payment of note at maturity.

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