Question
Craig issues a $720,000, five-month, zero-interest-bearing note to the National Bank to borrow $700,000 on October 1, 2020. What amount is the note payable recorded
Craig issues a $720,000, five-month, zero-interest-bearing note to the National Bank to borrow $700,000 on October 1, 2020. What amount is the note payable recorded at on October 1, 2020 and how much interest is recognized from October 1 to December 31, 2020?
| A. | $700,000 and $20,000. | |
| B. | $700,000 and $0. | |
| C. | $720,000 and $0. | |
| D. | $720,000 and $12,000. |
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Accounting Tools for business decision making
Authors: kimmel, weygandt, kieso
4th Edition
978-0470117262, 9780470534786, 470117265, 470534788, 978-0470095461
