Question

When a company issues a note payable to satisfy an account payable, there will be:

When a company issues a note payable to satisfy an account payable, there will be:

Homework Answers

Answer #1

Answer- when a company issues a note payable to satisy an account payable, there will be

Accounts payable debit

Notes payable credit

Explanation:-

Account payable and notes payable both are liabilities but notes payable has increased as it is issued to creditors so it is credited while accounts payable has decreased as the closure of accounts payable so it is debited. As this is rules in accounting if a liability has increased it will be credited and if a liability has decreased it will be debited.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Part C is incorrect interest on notes payable 54091. c Note payable 182400 Interest on notes...
Part C is incorrect interest on notes payable 54091. c Note payable 182400 Interest on notes payable 54091 cash 182400 discount on notes payable 54091 (To record 2nd payment) Larkspur Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2017, to expand its production capacity to meet customers’ demand for its product. Larkspur issues a(n) $912,000, 5-year, zero-interest-bearing note to Central Michigan for the new equipment when the prevailing market rate of interest for obligations of...
Notes Payable A business issued a 90-day, 7% note for $30,000 to a creditor on account....
Notes Payable A business issued a 90-day, 7% note for $30,000 to a creditor on account. Illustrate the effects on the accounts and financial statements of recording (a) the issuance of the note and (b) the payment of the note at maturity, including interest. If no account or activity is affected, select "No effect" from the dropdown list and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. a. Illustrate the effects on...
Crane Company receives $384,000 when it issues a $384,000, 10%, mortgage note payable to finance the...
Crane Company receives $384,000 when it issues a $384,000, 10%, mortgage note payable to finance the construction of a building at December 31, 2022. The terms provide for annual installment payments of $64,000 on December 31. (a1) a. Prepare an amortization schedule of a mortgage note for two years. b. Prepare the journal entry to record the mortgage loan c. Prepare the journal entries to record the first two installment payments Annual Interest Period Cash Payment Interest Expense Reduction of...
Sunland Inc. issues a $342,000, 10-year, 6% mortgage note payable on November 30, 2021, to obtain...
Sunland Inc. issues a $342,000, 10-year, 6% mortgage note payable on November 30, 2021, to obtain financing for a new building. The terms provide for monthly instalment payments. Prepare the journal entries to record the mortgage loan on November 30, 2021, and the first two payments on December 31, 2021, and January 31, 2022, assuming the payment is a fixed principal payment of $2,850. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If...
Chapter 10 -1    Entries for notes payable Bennett Enterprises issues a $648,000, 60-day, 6%, note...
Chapter 10 -1    Entries for notes payable Bennett Enterprises issues a $648,000, 60-day, 6%, note to Spectrum Industries for merchandise inventory. Assume a 360-day year. If required, round your answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. a. Journalize Bennett Enterprises’ entries to record: the issuance of the note. the payment of the note at maturity. 1. Inventory ________ Notes Payable ______ 2. Notes Payable _____...
Interest-Bearing Note Replacing an Unpaid Account Payable Rasputin Manufacturing owed $50,000 on account for inventory purchased...
Interest-Bearing Note Replacing an Unpaid Account Payable Rasputin Manufacturing owed $50,000 on account for inventory purchased on December 1, 2018. Rasputin uses a perpetual inventory system and the fiscal year ends on December 31. Rasputin was unable to pay the amount owed by the February 28 due date because of financial difficulties. On March 1, 2019, Rasputin signed a $50,000, 10.4% interest-bearing note. This note was repaid with interest on September 1, 2019. Required: If no entry is required, type...
Entries for notes payable Bennett Enterprises issues a $912,000, 30-day, 8%, note to Spectrum Industries for...
Entries for notes payable Bennett Enterprises issues a $912,000, 30-day, 8%, note to Spectrum Industries for merchandise inventory. Assume a 360-day year. If required, round your answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank. a. Journalize Bennett Enterprises’ entries to record: the issuance of the note. the payment of the note at maturity. 1. 2. b. Journalize Spectrum Industries’ entries to record: the receipt of the note....
A company preparing for a Chapter 7 liquidation has the following liabilities: • Note payable A...
A company preparing for a Chapter 7 liquidation has the following liabilities: • Note payable A of $112,000 secured by land having a book value of $61,000 and a fair value of $81,000. • Note payable B of $142,000 secured by a building having a $71,000 book value and a $51,000 fair value. • Note payable C of $71,000, unsecured. • Administrative expenses payable of $31,000. • Accounts payable of $131,000. • Income taxes payable of $41,000. The company also...
On 1 January 2017, sefakor issues a 5percent convertible loan note at par. interest payable annually...
On 1 January 2017, sefakor issues a 5percent convertible loan note at par. interest payable annually in arreas on 31st December each year. The loan note is redeemable at par or convertible into equity shares at the option of the loan note holders on 31 December 2019. the interest on an equivalent loan note without the conversion rights would be 8percent per annum. The present values of GHS1 receivable at the end of each year based on discount rates of...
On June 1, 2019, ABC Company signed a $25,000, 120-day, 6% note payable to cover a...
On June 1, 2019, ABC Company signed a $25,000, 120-day, 6% note payable to cover a past due account payable. a. What is the total amount of interest to be paid on this note? b. Prepare ABC Company's general journal entry to record the issuance of the note payable c. Prepare ABC Company's general journal entry to record the payment of the note on September 29, 2019 (2.5 marks). What are the characteristics of corporations (2.5 mark). On July 31,...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT
Active Questions
  • For this problem, carry at least four digits after the decimal in your calculations. Answers may...
    asked 1 minute ago
  • MEASURING ECONOMIC PERFORMANCE: A) The expenditure approach; B) The Income Approach; C) Problems with GDP as...
    asked 9 minutes ago
  • A square gate is used to prevent seawater (density = 1027 kg/m^3) intrusion into a sewer...
    asked 16 minutes ago
  • Show that sequence {sn} converges if it is monotone and has a convergent subsequence.
    asked 27 minutes ago
  • Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and...
    asked 28 minutes ago
  • 4.___________________ are for-profit organizations that contract out or lease a wide range of light manufacturing, warehousing,...
    asked 31 minutes ago
  • A simple random sample of size n is drawn. The sample​ mean, x overbar​, is found...
    asked 1 hour ago
  • Write C++ code to: Create a function called “ReadFile” that: Accepts a filename as input Opens...
    asked 1 hour ago
  • explain how media effects or influences our behavior in a relationship/ family structure OR how behavioral...
    asked 1 hour ago
  • Consider the following schema: Distributor (d-id: numeric, d-name: varchar, address: varchar) Item (i-id: numeric, i-name: varchar,...
    asked 1 hour ago
  • Dove's advertisement brainstormed marketers. We should be open minded. There are a lot embedded concepts for...
    asked 1 hour ago
  • 5. Describe the function for each of the following components of an image intensifier tube. (3...
    asked 1 hour ago