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A Bank agrees to lend Rundle Pty Ltd $200,000 on 1st January, 20X9. Rundle Pty Ltd signs a $200,000, 4%, 9-month note. Interest is paid
A Bank agrees to lend Rundle Pty Ltd $200,000 on 1st January, 20X9. Rundle Pty Ltd signs a $200,000, 4%, 9-month note. Interest is paid at maturity. Rundle Pty Ltd's financial year ends at 30th June. The entry made by Rundle Pty Ltd at maturity: Dr Note payable 200,000 Dr. Interest payable 2,000 Dr. Interest expense 4,000 Cr. Cash 206,000 Dr Note payable 200,000 Dr. Interest expense 6,000 Cr. Cash 206,000 Dr Note payable 200,000 Dr. Interest payable 4,000 Dr. Interest expense 2,000 Cr. Cash 206,000 O Dr Note payable 200,000 Dr. Interest payable 6,000 Cr. Cash 206,000
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