Accounting Journal Entry Question for a Notes Payable?

Posted:: 3+ months ago by rushlover07
Topics:: entry, business, note, question, journal, answer, accounting

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Hello. Can somebody (preferably an accountant or someone who really knows accounting and is 100% sure of their answer ) tell me what the Journal Entry would be for this: "Discounted at 12% a 60-day non-interest-bearing note, $5000; proceeds, $4900; interest, $100. NP7." I need what journal it has to go in and the Debit(s) and Credit(s).

Thank you very much!!

Added 3+ months ago:

PS- This is for an accounting class. I'm having trouble with this one.

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Answers (1)

Amid_22

Hi :) Im am in an accounting 3 class and I actually just did this question. I put this entry in the cash receipts journal and did notes payable credit 4900 interest expense credit 100 and cash debit 5000. I think that is correct and I hope this helps :)

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rushlover07

Sounds good to me. This was from a "Reinforcement" Problem in my class- I didn't remember doing this. Thanks!

rushlover07

The only question is that usually, wouldn't you debit an expense account? I know there are times where you would credit it, but I'm just wondering.

Amid_22

Lol it was my reinforcement too! Lol I bet were in the same school! Lol umm I'm not too sure I'm going to check with some people in my class as soon as I find out ill let you know! :)

rushlover07

hi, just wondering if you found anything out yet?

Amid_22

No not yet :( Im sorry

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