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Roseland Design Borrowed $700,000 on a 90-Day Note from CorpOne

question 40

Essay

Roseland Design borrowed $700,000 on a 90-day note from CorpOne Funding Company. CorpOne discounts the note at 8%. (Assume a 360-day year is used for interest calculations.) (a) Joumalize Roseland's entries to record:
a. The issuance of the note.
b. The payment of the note at maturity.

(b) Journalize CorpOne's entries to record:
a. The receipt of the note.
b. The receipt of the payment of the note at maturity.


Definitions:

Bond Angle

The angle formed between two bonds at the atom where they meet, influencing the molecule's geometry.

Dimethyl Ether

An organic compound with the formula CH3OCH3, used as an aerosol spray propellant and a refrigerant.

Boiling Point

The temperature at which a liquid turns to vapor, specific to each substance under given pressure conditions.

Diethyl Ether

A highly volatile and flammable ether used as a solvent and formerly as an anesthetic.

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