Question

please show net and clear and put what amount goes under debit and what amount goes under credit make sure chart account are named correctly under decription off of the this given. # each journal A or B

Instructions Bully Industries is considering issuing a $100,000, 7% note to a creditor on account Required: the note is issued with a 45-day term, joumalize the entries to record (refer to the company's Chart of Accounts for exact wording of account a 1. the issuance of the note 2. the payment of the note at maturity Assume 360-day year b. I the note is ined with a 90-day term, joumalize the entries to record (refer to the company's Chart of Accounts for exact wording of account the nuance of the 2. the payment of the payment of the note at maturity Assume a 360-day yes

Answer 1

Journalizing Entries for BULL City Industries:

(a). If Note is issued for 45-day term

Date	Description	Debit ($)	Credit($)
Jan 1	Cash	100,000
	Notes Payable		100,000
	To record 45-day Note issued
	Interest Expenses	875
	Interest Payable		875
	To record accrued interest on note at year end
Feb 15	Notes Payable	100,000
	Interest Payable	875
	Cash		100,875
	To record principal and interest paid on Note

(b). If Note is issued for 90-day term

Date	Description	Debit ($)	Credit($)
Jan 1	Cash	100,000
	Notes Payable		100,000
	To record 45-day Note issued
	Interest Expenses	1750
	Interest Payable		1750
	To record accrued interest on note at year end
Apr 1	Notes Payable	100,000
	Interest Payable	1750
	Cash		101,750
	To record principal and interest paid on Note