Entries for Discounted Note Payable A business issued a 30-day note for $72,000

Question

Entries for Discounted Note Payable

A business issued a 30-day note for $72,000 to a creditor on account. The note was discounted at 7%. Assume a 360-day year.



a. Journalize the entry to record the issuance of the note. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".



Accounts Payable _________?___________ ___________0__________

Interest Expense ________420__________ ___________0__________

Notes Payable _________0___________ ___________?__________






THank you.

Explanation / Answer

A business issued a 30-day note for $72,000 to a creditor on account. The note was discounted at 7%. Assume a 360-day year. Accounts payable DEBIT 72000 Interest expense DEBIT 420 Notes payable CREDIT 72420

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.