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you will use the illustration in your book but not all of them so i just picked up some of the problems so we will proceed with the first problem in the chapter so we have a pittance company so pittance company provided the following information in connection with a bank loan so we have the transactions on march 1 intense borrowed 2 million from bank on a six-month note carrying an interest of 12 per annum accounts of 3 million are pledged to secure the loan on april 1 pledged accounts of 1 million are collected minus two percent discounts june 1 collected remaining pledge accounts and on september one repaid the bank loan plus the interest so requirement here is to prepare the journal entries so for march 1 the entry would be debit cash for the proceeds of the loan and credit note payable bank so if youre going to ask my luggage i discount because this is only a simple interest note it did not state that there is an advanced interest if its an advanced interest note then i discount