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		=2100006%/36045
	Cash		211575

ekkarill92 answered 2 years ago

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