Lesson 20 2

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Lesson 20 2

  1. 1. LESSON 20-2 Notes Payable CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning
  2. 2. 2 SIGNING A NOTE PAYABLE page 593 May 18. Signed a 90-day, 6% note, $20,000.00. Receipt No. 345. 1 2 1. 2. 3. 4. 5. 3 4 5 Write the date. Write the account title. Write the receipt number. Write the principle amount in the General Credit column. Write the same amount in the Cash Debit column. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 20-2
  3. 3. 3 PAYING PRINCIPLE AND INTEREST ON A page 594 NOTE PAYABLE August 16. Paid cash for the maturity value of the May 18 note: principal, $20,000.00, plus interest, $300.00; total, $20,300.00. Check No. 721. 2 1 1. 2. 3. 4. 3 6 Write the date. Write the account title. Write the check number. note’s Write the principal amount. 5. Write the account title. 4 7 5 6. Write the interest expense amount. 7. Write the amount of cash paid. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 20-2
  4. 4. SIGNING A NOTE PAYABLE FOR AN EXTENSION OF TIME 4 page 595 June 5. Restaurant Supply signed a 90-day, 12% note to Hayport Company for an extension of time on its account payable, $4,000.00. Memorandum No. 66. 1 2 1. Debit to Accounts Payable 2. Credit to Notes Payable CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 20-2
  5. 5. 5 PAYING A NOTE PAYABLE ISSUED FOR AN EXTENSION OF TIME page 596 September 3. Paid cash for the maturity value of the note payable to Hayport Company: principal, $4,000.00, plus interest, $120.00; total, $4,120.00. Check No. 722. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 20-2
  6. 6. 6 TERMS REVIEW page 597  current liabilities  interest expense CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 20-2
  7. 7. 6 TERMS REVIEW page 597  current liabilities  interest expense CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 20-2

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