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A business issued a 45-day, 6% note for $210,000 to a creditor on account. Journalize the...

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.

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Expert Solution

a Accounts payable 210000
        Notes payable 210000
b Notes payable 210000
Interest expense 1575 =210000*6%/360*45
        Cash 211575

ekkarill92 answered 2 years ago
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