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.
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
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