Asked by Jaynese Jones on Jun 14, 2024
Verified
Ember Co. entered into the following transactions involving short-term notes payable.
On June 18, Ember purchased $25,000 merchandise from Halco Co., terms are 2/10, n/30. Halco uses the perpetual inventory system.
On July 19, Ember replaced the June 18 account payable with a 60-day, $22,000 note bearing 9% annual in addition to paying $3,000 in cash. ________ Paid the amount due on the note at maturity.
1. Determine the maturity date for the note.
2. Prepare journal entries for all the preceding transactions and events.
Short-Term Notes Payable
Short-duration loans evidenced by promissory notes that a company must pay within a year or within its operating cycle, whichever is longer.
- Understand the recording and management of short-term notes payable including interest calculations.
Verified Answer
NH
Nicki HashleyJun 20, 2024
Final Answer :
1. Maturity date: September 17 (12 days in July, 31 days in August, 17 days in September)
Learning Objectives
- Understand the recording and management of short-term notes payable including interest calculations.