On October 1, Ramos Co. signed a $90,000, 60-day discounted note at the bank. The discount rate was 6%, and the note was paid on November 30.
(Assume a 360-day year is used for interest calculations.)

(a)Journalize the entries for October 1 and November 30.
(b)Assume that Ramos Co. signed a 6% note. Journalize the entries for October 1 and November 30.

Question

On October 1, Ramos Co. signed a $90,000, 60-day discounted note at the bank. The discount rate was 6%, and the note was paid on November 30. 
(Assume a 360-day year is used for interest calculations.)

(a)Journalize the entries for October 1 and November 30.
(b)Assume that Ramos Co. signed a 6% note. Journalize the entries for October 1 and November 30.

Quizplus · Accepted Answer

The Answer of On October 1, Ramos Co. signed a $90,000, 60-day discounted note at the bank. The discount rate was 6%, and the note was paid on November 30. 
(Assume a 360-day year is used for interest calculations.)

(a)Journalize the entries for October 1 and November 30.
(b)Assume that Ramos Co. signed a 6% note. Journalize the entries for October 1 and November 30.