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6 April, 03:07

Carson's Shoe Store signed a 90-day, interest-bearing, 10% note for $5,000.00 with First National Bank. What is Carson's Shoe Store's journal entry for the issuance of the note payable?

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  1. 6 April, 03:33
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    Debit Credit

    Cash $5,000.00

    Notes Payable $5,000.00

    Explanation:

    Data provided in the question:

    Amount = $5,000.00

    Interest rate on note = 10%

    Time = 90 days

    Now,

    Carson's Shoe Store's journal entry for the issuance of the note payable will be

    Debit Credit

    Cash $5,000.00

    Notes Payable $5,000.00
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