Entries for Discounted Note Payable A business issued a 90da

Entries for Discounted Note Payable A business issued a 90-day note for $54,000 to a creditor on account. The note was discounted at 6%. Assume a 360-day year a. Journalize the entry to record the issuance of the note. If an amount box does not require an entry, leave it blank. If necessary, round to one decimal place. a. b. Journalize the entry to record the payment of the note at maturity. b.

Solution

a.

b.

General Journal	Debit	Credit
Accounts payable	$53,190
Interest expense($54,000 * 6% * 90/360)	$810
Notes payable		$54,000