Roseland Design Borrowed $700,000 on a 90-Day Note from CorpOne

Essay

Roseland Design borrowed $700,000 on a 90-day note from CorpOne Funding Company. CorpOne discounts the note at 8%. (Assume a 360-day year is used for interest calculations.)

(a) Journalize Roseland’s entries to record:
a. The issuance of the note.
b. The payment of the note at maturity.

(b) Journalize CorpOne’s entries to record:
a. The receipt of the note.
b. The receipt of the payment of the note at maturity.