On October 1, Ramos Co. signed a $90,000, 60-day discounted note at the bank. Th

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.) 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 Hide 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

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".

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".

Explanation / Answer

(a)

(b)

Date Particulars Amount Oct-01 Bank Debit 89100 Interest Expense Debit 900 (90000*6%*60/360) Notes Payable Credit 90000 Nov-30 Notes Payable Debit 90000 Bank Debit 90000

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