Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1 On April Salish Company borrowed $1000 from the bank by signing a 12% 3-month note payonin. The amount borrowed plus accrued interest is due

image text in transcribed
image text in transcribed
1 On April Salish Company borrowed $1000 from the bank by signing a 12% 3-month note payonin. The amount borrowed plus accrued interest is due on July 1. What journal entry should the company make on July 1 when it repays the note Me Choice 5 Account Notes Payable Interest Payable Cash Debit Credit 1.000 120 1.120 Account Notes Payable Interest Expense Cash Debit Credit 1.000 30 1.030 Account Notes Payable Cash Debit Credit 1.000 1000 120 Interest Payable Cash 1.120 Account Notes Payable Interest Expense Cash Debit Credit 1.000 30 1030 Account Notes Payable Cash Debit Credit 1,000 1.000 O Account Cash Notes Payable Interest Expense Debit Credit 1,030 1,000 30

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Creative Accounting, Fraud And International Accounting Scandals

Authors: Michael J. Jones

1st Edition

0470057653, 9780470057650

More Books

Students also viewed these Accounting questions