Which alternative is more favorable to the borrower? Explain.

Entries for notes payable

1. Obj. 1

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.

EX 11-6

Entries for discounted note payable

1. Obj. 1

A business issued a 45-day note for $80,000 to a creditor on account. The note was discounted at 5%. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity.

EX 11-7

Entries for notes payable

1. Obj. 1

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

1. 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.

2. 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.

\

 Place Your Order Here!

Leave a Comment

Your email address will not be published. Required fields are marked *