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    sharonragusa's Avatar
    sharonragusa Posts: 1, Reputation: 1
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    #1

    Oct 22, 2010, 02:47 PM
    Accounting
    A business issued a 60-day, 7% note for $15,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording (a) the issuance if the note and (b) the payment of the note at maturity, including interest.
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Oct 22, 2010, 03:17 PM

    a. An Account Receivable becomes a Note Receivable

    b. You receive Cash and the Note Receivable is satisfied. Also you earned Interest Revenue.
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