On March 1, LGE asks to extend its past-due $7,600 account payable to Tyson. Tyson agrees to accept $1,800 cash and a 180-day, 8%,$5,800 note payable to replace the account payable. (Use 360 days a year.)(1) Prepare the March 1 entry for LGE.(2) Prepare the August 28 entry for LGE when it pays the note and interest to Tyson.View transaction listJournal entry worksheet12Record LGE's entry to extend its past-due $7,600 account payable by payingcash of $1,800 and issuing a 180-day, 8%, $5,800 note payable.

Answer : Date Account title Debit Credit Mar 1 Account payable - Tyson a/c Dr. $7600 To…

Answered: GE or LGE when it pays the note and…

Business

Accounting

GE or LGE when it pays the note and interest to sheet

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 16Q: Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual...

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Question

On March 1, LGE asks to extend its past-due $7,600 account payable to Tyson. Tyson agrees to accept $1,800 cash and a 180-day, 8%,
$5,800 note payable to replace the account payable. (Use 360 days a year.)
(1) Prepare the March 1 entry for LGE.
(2) Prepare the August 28 entry for LGE when it pays the note and interest to Tyson.
View transaction list
Journal entry worksheet
1
2
Record LGE's entry to extend its past-due $7,600 account payable by paying
cash of $1,800 and issuing a 180-day, 8%, $5,800 note payable.

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