Question
Admire County Bank agrees to lend Givens Brick Company $600,000 on January 1. Givens Brick Company signs a $600,000, 8%, 9-month note. What entry will
Admire County Bank agrees to lend Givens Brick Company $600,000 on January 1. Givens Brick Company signs a $600,000, 8%, 9-month note. What entry will Givens Brick Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30?
Notes Payable.......................................................................... 636,000 Cash............................................................................... 636,000 | ||
Notes Payable.......................................................................... 600,000 Interest Payable........................................................................ 36,000 Cash............................................................................... 636,000 | ||
Interest Expense....................................................................... 36,000 Notes Payable.......................................................................... 600,000 Cash............................................................................... 636,000 | ||
Interest Payable........................................................................ 24,000 Notes Payable.......................................................................... 600,000 Interest Expense....................................................................... 12,000 Cash............................................................................... 636,000 |
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