[ Other - Business & Finance ] Open Question : accounting - debt question?
trying to work this problem but i'm completely stuck..
On September 1, 2011, XYZ paid-off the $2400 note payable that was outstanding since Jan 1, 2011. The note had an 8% interest rate, had been issued on September 1, 2010, and required semiannual interest payments on February 28 and August 31.
Also on September 1, 2011, XYZ borrowed $3,500 on a new note payable. The new note carries a 6% interest rate with similar payment terms as the note that was just paid-off.
could you please help me with the journal entries?
Source: http://answers.yahoo.com/question/index?qid=20120903165849AAkc6To