Answer:
a.
Accounts Payable 150,000
Notes Payable 150,000
b.
Notes Payable 150,000
Interest Expense* 875
Cash 150,875
* $150,000 × 7% × 30/360
EX 11-4 Entries for notes payable
A business issued a 30-day, 7% note for $150,000 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.
Answer:
a.
Accounts Payable 150,000
Notes Payable 150,000
b.
Notes Payable 150,000
Interest Expense* 875
Cash 150,875
* $150,000 × 7% × 30/360
Answer:
a.
Accounts Payable 150,000
Notes Payable 150,000
b.
Notes Payable 150,000
Interest Expense* 875
Cash 150,875
* $150,000 × 7% × 30/360