4.5 Journalizing Transactions

Question 1

Issued by the maker, a liability that represents a written promise by the maker to pay the payee a specified amount at a specified future date, usually requiring an additional payment of explicit interest

Answer 1

Notes Payable

Question 2

Received by the payee, an asset that represents a written promise by the maker to pay the payee at a specified future date, usually requiring an additional payment of explicit interest

Answer 2

Notes Receivable