Accounting Calculation

Accounting
Tutor: None Selected Time limit: 1 Day

A business issued a 30-day, 7% note for $36,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording (a) the issuance of the note and (b) the payment of the note at maturity, including interest.

Aug 27th, 2014

DR Purchase ( name of the item ) = $36,000 
& CR Note Payable = $36,000 

on the  30th day 

DR Note Payable $ 36,000 
DR Interest on Note $ 210 ( 36000 x 7/100 x30/360 ) 
CR Bank $ 36,210

Aug 27th, 2014

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Aug 27th, 2014
...
Aug 27th, 2014
Dec 4th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer