Question

Entries for Notes Payable A business issued a 45-day, 6% note for $210,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Assume a 360-day year. For a compound transaction, if an amount box does not require an entry, leave it blank. a. fill in the blank 2 fill in the blank 4 b. fill in the blank 6 fill in the blank 7 fill in the blank 9 fill in the blank 10 fill in the blank 12 fill in the blank 13

Answer 1

Answer:

The journal entry to record the issuance of the note:

Dr Accounts payable 210,000

    Cr Notes payable 210,000

The journal entry to record the payment of the note:

Dr Notes payable 210,000

Dr Interest expense 1,575

    Cr Cash 211,575

Interest expense = $210,000 x 6% x 45/360 = $1,575