On November 1,2012,Bob's Skateboards Store signed a $12,000,3-month,5% note payable to cover a past due account payable.This company uses a calendar year to report financial activity and updates the accounting records monthly.
a.What amount of total interest will the company pay on this note?
b.Prepare Bob's general journal entry to record the issuance of the note payable.
c.Prepare Bob's general journal entry to record the payment of the note on February 1,2013.

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The Answer of On November 1,2012,Bob's Skateboards Store signed a $12,000,3-month,5% note payable to cover a past due account payable.This company uses a calendar year to report financial activity and updates the accounting records monthly.
a.What amount of total interest will the company pay on this note?
b.Prepare Bob's general journal entry to record the issuance of the note payable.
c.Prepare Bob's general journal entry to record the payment of the note on February 1,2013.

On November 1,2012,Bob's Skateboards Store Signed a $12,000,3-Month,5% Note Payable