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Question
Roseland Design borrowed $700,000 on a 90-day note from CorpOne Funding Company. CorpOne discounts the note at 8%. (Assume a 360-day year is used for interest computations.)
a. Journalize Roseland’s entries for:
(1) The issuance of the note.
(2) The payment of the note at maturity.
b. Journalize CorpOne’s entries for:
(1) The receipt of the note.
(2) The receipt of the payment of the note at maturity.
Answer
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