Mary’s Travel Agency had the following notes payable tra
Question and Solution
Mary’s Travel Agency had the following notes payable transactions: Apr. 1 Borrowed $4,000 from Finance Bank, signing a 90-day, 8% note. 5 Gave a $3,000, 60-day, 10% note to Krenshaw Airline for purchase of merchandise. 10 Paid $400 cash and issued a $1,600, 30-day, 12% note to Andrew Adams in payment of an account payable. May 10 Paid $400, plus interest, and gave a new $1,200, 30-day, 14% note to Andrew Adams. 20 Borrowed $4,500 for 60 days from Finance Bank on a non-interest-bearing note. The discount rate is 14%. June 4 Paid $500, plus interest, to Krenshaw Airline (see April 5) and gave a new $2,500, 30-day, 12% note to extend time for payment. 9 Paid the principal and interest due on the $1,200 note to Andrew Adams. (See May 10.) 30 Paid the principal and interest due on the $4,000 note to Finance Bank. (See April 1.) July 4 Paid the principal and interest due on the $2,500 note to Krenshaw Airline. (See June 4.) 19 Paid the $4,500 non-interest-bearing note to Finance Bank. (See May 20.) REQUIRED Record the transactions in a general journal.