Answer:
Debit Accounts Payable with $24,000
Credit Notes Payable with $24,000
Explanation:
A note payable also referred to as a promissory note is a binding financial instrument used by one party in writing to promise to pay a specified amount of money another party to a transaction at specific or determinable future date under an agreed time.
From the question, the conversion of the account payable to note payable is changing from one type of current liability to another type of current liability in the book of Watson Enterprises. Therefore, the journal entry that should be recorded by Watson Enterprises upon signing the note is as follows:
Debit Accounts Payable with $24,000
Credit Notes Payable with $24,000
Note:
The interest will be recorded immediately after signing the note but on the 60th day when it falls due.