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Melanie Corp. borrowed $102,000 cash on September 1, 2019, and signed a one-year 6%, interest-bearing note payable. The interest and principal are both due on
Melanie Corp. borrowed $102,000 cash on September 1, 2019, and signed a one-year 6%, interest-bearing note payable. The interest and principal are both due on August 31, 2020. Assume that the appropriate adjusting entry was made on December 31, 2019 and that no adjusting entries have been made during 2020. Which of the following would be the required journal entry to pay the note on August 31, 2020? Multiple Choice Interest expense Interest payable Notes payable Cash 4,080 2, 040 102,000 108, 120 Notes payable Interest expense Cash 102,000 6, 120 108, 120 Interest expense Cash 6, 120 6, 120 Windows
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