Question
Mission Corp. borrowed $50,000 cash on April 1, 2019, and signed a one-year 12%, interest-bearing note payable. The interest and principal are both due on
Mission Corp. borrowed $50,000 cash on April 1, 2019, and signed a one-year 12%, interest-bearing note payable. The interest and principal are both due on March 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 entire amount due on March 31, 2020?
Dr Interest expense xxx Dr Interest payable xxx Dr Notes payable xxx Cr Cash xxx
Dr Interest expense xxx Dr Notes payable xxx Dr Interest payable xxx Cr Cash xxx
Dr Note payable xxx Dr Interest payable xxx Cr Cash xxx
Dr Interest payable xxx Dr Note payable xxx Cr Cash xxx
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