Entries for discounting notes payable
Swain Enterprises issues a 60-day note for $800,000 to Hill Industries for merchandise inventory. Hill Industries discounts the note at 6%.
a. Journalize Swain Enterprises' entries to record:
1. the issuance of the note.
2. the payment of the note at maturity.
b. Journalize Hill Industries' entries to record:
1. the receipt of the note.
2. the receipt of the payment of the note at maturity.