Tarheel Services Is Holding a Note Receivable from One of Its

question 25

Essay

Tarheel Services is holding a note receivable from one of its customers and wishes to collect the cash earlier than the maturity date of the note.The note is for $1,000 and carries a rate of 4%.Tarheel sells the note to a bank for $950.Please provide the journal entry which Tarheel makes to record this transaction.
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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's earnings.

Paid Wages

Refers to the total amount of money paid by employers to employees for work performed during a specific period.

Decrease Stockholders' Equity

A reduction in the amount of capital contributed by shareholders plus retained earnings.

Financial Statement

A written record that conveys the financial activities and conditions of a business or entity, including the balance sheet, income statement, and cash flow statement.