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Journalize ramseys entries to record the issuance of note

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Question

Entries for Discounting Notes Payable

Ramsey Company issues an $800,000, 45-day note to Buckner Company for merchandise inventory. Buckner discounts the note at 7%.

Assume a 360-day year. For a compound transaction, if an amount box does not require an entry, leave it blank.

a. Journalize Ramsey's entries to record:

the issuance of the note.

the payment of the note at maturity.

b. Journalize Buckner's entries to record:

the receipt of the note.

the receipt of the payment of the note at maturity.

Reference no: EM132381158

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