A Business Issued a 120-Day, 6% Note for $10,000 to a Creditor

Essay

A business issued a 120-day, 6% note for $10,000 to a creditor on account. The company uses a 360-day year for interest calculations. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. $$\begin{array} { | c | l | l | l | } \hline & \text { Description } & \text { Debit } & \text { Credit } \\\hline \text { (a) } & & & \\\hline & & & \\\hline & & & \\\hline \text { (b) } & & & \\\hline & & & \\\hline & & & \\\hline\end{array}$$