Entries for Discounted Note Payable A business issued a 30-day note for $72,000
ID: 2352868 • Letter: E
Question
Entries for Discounted Note PayableA business issued a 30-day note for $72,000 to a creditor on account. The note was discounted at 7%. Assume a 360-day year.
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Hint(s)
a. Journalize the entry to record the issuance of the note. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
a. Accounts Payable _______________________ ____________0_____________
Interest Expense _______________________ ____________0_____________
Notes Payable ___________0___________ __________________________
b. Journalize the entry to record the payment of the note at maturity.
b. _________________ _____________________ __________________
_________________ ___________________
Explanation / Answer
A business issued a 30-day note for $72,000 to a creditor on account. The note was discounted at 7%. Assume a 360-day year. Accounts payable DEBIT 72000 Interest expense DEBIT 420 Notes payable CREDIT 72420
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