Question
A Bank agrees to lend Rundle Pty Ltd $200,000 on 1 st January, 20X9. Rundle Pty Ltd signs a $200,000, 4%, 9-month note. Interest is
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 Ltds financial year ends at 30th June.
The entry made by Rundle Pty Ltd at maturity:
Group of answer choices
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 payable 6,000
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
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappett
23rd edition
978-1259536359
