I\'m needing ALL parts of this question answered please! On October 1, Ramos Co.
ID: 2484154 • Letter: I
Question
I'm needing ALL parts of this question answered please!
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. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
Oct. 1
Nov. 30
b. Assume that Ramos Co. signed a 6% note. Journalize the entries for October 1 and November 30. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
Oct. 1
Nov. 30
Hide
a. Journalize the entries for October 1 and November 30. For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
Oct. 1
Nov. 30
Explanation / Answer
Answer a. Journal Entry Date Particulars Dr. Amt. Cr. Amt. Oct. 1 Cash Dr. 89,100 Interest Exp. Dr. 900 To Notes Payable 90,000 Interest Exp. = 90000 X 6% X 60/360 = $900 Nov. 30 Notes Payable Dr. 90,000 To Cash 90,000 Answer B. Journal Entry Date Particulars Dr. Amt. Cr. Amt. Oct. 1 Cash Dr. 90,000 To Notes Payable 90,000 Nov. 30 Notes Payable Dr. 90,000 Interest Exp. Dr. 900 To Cash 90,900 Interest Exp. = 90000 X 6% X 60/360 = $900
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.