Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On August 1, 2019, Treasure Company borrowed $80,000 cash from MB Bank by issuing an 8-month, 6% interest-bearing note. At maturity date, the company paid

image text in transcribed
image text in transcribed
image text in transcribed
On August 1, 2019, Treasure Company borrowed $80,000 cash from MB Bank by issuing an 8-month, 6% interest-bearing note. At maturity date, the company paid the full amount due. The company prepares its financial statement annually at the end of December. The adjusting entry to record the accrued interest: * Debit Interest Expense and Credit Interest Payable for $3,200. Credit Interest Expense and Debit Interest Payable for $4,800 Debit Interest Expense and Credit Interest Payable for $2,000. Credit Cash and Debit Notes Payable for $80,000. None of the above The maturity date of the note is: * March 1, 2020 April 1, 2020 May 1, 2020 None of the above At maturity date, interest payable amount is: $4,800 $3,200 $2,000 $1,200 None of the above At maturity date, interest payable amount is: $4,800 $3,200 $2,000 $1,200 None of the above At maturity date, cash paid will be recorded as: * Debit Cash for $84,800 Credit Cash for $83,200 Debit Cash for $82,000 Credit Cash for $80,000 None of the above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial And Managerial Accounting

Authors: John J. Wild

9th Edition

1260728773, 9781260728774

More Books

Students also viewed these Accounting questions

Question

=+c) Would you use this model? Explain.

Answered: 1 week ago