Entries for Discounted Note Payable A business issued a 90-day note for $57,000 to a creditor on account. The note was discounted at 8%. 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. If necessary, round to one decimal place. Accounting numeric field
b. Journalize the entry to record the payment of the note at maturity.

A. Dr Accounts payable55,830

Dr Interest expense1170

Cr Notes payable 57,000

B. Dr Notes payable57,000

Cr Cash 57,000

Explanation:

A. Preparation of the journal entry to record the issuance of the note.

Dr Accounts payable55,830

(57,000-1170)

Dr Interest expense (57,000*8%*90/360)1170

Cr Notes payable 57,000

(To record the issuance of the note)

B. Preparation of the journal entry to record the payment of the note at maturity.

Dr Notes payable57,000

Cr Cash 57,000

(to record the payment of the note at maturity)