Entries for Notes Payable A business issued a 60-day, 10% note for $83,000 to a creditor on account. Journalize the entries to record (a) the issuance of the note and (b) the payment of the note at maturity, including interest. Assume a 360-day year.

The journal entries are as follows

1. Account payable $81,617

Interest expense $1,383.33

To Notes payable $83,000

(Being the issuance of the note is recorded)

The interest expense is computed below:

= $83,000 * 60 days : 360 days * 10%

= $1,383.33

2. Note payable Dr $75,000

To Cash $75,000

(Being the payment is recorded)