III On October 1, Eli's Carpet Service borrows $125,000 from First National Bank on a 3- month, $125,000, 8% note. The entry by Eli's Carpet Service to record payment of the note and accrued interest on January 1 is a. b. Cash.......... 127,500 c. Notes Payable....... 125,000 Interest Payable............ 10,000 Cash.......... 135,000 d. Notes Payable...... 125,000 Interest Expense..... 2,500 Cash......... 127,500 2,500 Cash........ 127,500 Select one: a. Notes Payable........ Interest Payable........ .125,000 2,500 Cash...... .127,500 .127,500 b. Notes Payable........ Cash........ 127,500 c. Notes Payable...... 125,000 Interest Payable....... Cash.......... 135,000 10,000 d. Notes Payable.......... Interest Expense...... Cash........ 127,500 125,000 2,500 Previous page Next pa