A business issued a 120-day, 6% note for $10,000 to a creditor on account. The company uses a 360-day year for interest calculations. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. $$\begin{array} { | c | l | l | l | }
\hline & \text { Description } & \text { Debit } & \text { Credit } \
\hline \text { (a) } & & & \
\hline & & & \\hline & & & \
\hline \text { (b) } & & & \
\hline & & & \
\hline & & & \
\hline
\end{array}$$

Question

A business issued a 120-day, 6% note for $10,000 to a creditor on account. The company uses a 360-day year for interest calculations. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. $$\begin{array} { | c | l | l | l | } 
\hline & \text { Description } & \text { Debit } & \text { Credit } \
\hline \text { (a) } & & & \
\hline & & & \\hline & & & \
\hline \text { (b) } & & & \
\hline & & & \
\hline & & & \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of A business issued a 120-day, 6% note for $10,000 to a creditor on account. The company uses a 360-day year for interest calculations. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. $$\begin{array} { | c | l | l | l | } 
\hline & \text { Description } & \text { Debit } & \text { Credit } \
\hline \text { (a) } & & & \
\hline & & & \\hline & & & \
\hline \text { (b) } & & & \
\hline & & & \
\hline & & & \
\hline
\end{array}$$

A Business Issued a 120-Day, 6% Note for $10,000 to a Creditor