Premium Office Equipment, Inc., discounted its own $30,000, noninterest-bearing, 180-day note on...

Question

Premium Office Equipment, Inc., discounted its own $30,000, noninterest-bearing, 180-day note on November 16, 2018, at Niagara County Bank at a discount rate of 9%. Prepare dated journal entries for:

Required

a.The original discounting on November 16

b.The adjustment required at the end of the company’s calendar-year accounting period

c.Payment at maturity

Mohammad Wasif · Accepted Answer

Sheet1
		S. No	Date	Particulars	Debit	Credit
		a	16-Nov-18	Cash	$28,708
				Discount on notes payable	$1,292
				     Note Payable		$30,

Premium Office Equipment, Inc., discounted its own $30,000, noninterest-bearing, 180-day note on November 16, 2018, at Niagara County Bank at a discount rate of 9%. Prepare dated journal entries for:...

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