Response to the following problem:
June 15: Borrowed $300,000 from Ima Bank, issuing a 60 day, 9% note
July 21: Purchased tools by issuing a $240,000, 60 day note to Charger Co. which discounted the note at the rate of 7%
August 14: Paid Ima Bank the interest due on the note of June 15 and renewed the loan by issuing a new 30 day 10% note for $300,000.
(Journalize both the debit and credit to the notes payable account)
Sept. 13 Paid Ima Bank the amount due on the note of Aug. 14
Sept 19 : Paid Charger Co the amount due on the note of July 21.