Notes Payable and Receivable
Recording Notes Payable (Interest-Bearing and Non-Interest Bearing)
- On August 1, a business borrowed $9,000 from City Bank by issuing a 60-day, 5% note payable for that amount.
- On August 1, a business signed a $9,000, 60-day non-interest bearing note payable that City Bank discounted at a rate of 5%.
Download the general journal form by clicking on Accounting Forms from the Student Center. For each assumption a. and b., record the entry on August 1 and record the payment of the note on September 30.