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On December 1, 2016, Old Car Co. borrowed money at the bank by signing a 90-day non-interest-bearing note for $24,000 that was discounted at 8%.
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On December 1, 2016, Old Car Co. borrowed money at the bank by signing a 90-day non-interest-bearing note for $24,000 that was discounted at 8%. Which of the following entries is correct?
December 31, 2016 Interest Expense 160 Discount on Notes Payable 160
December 31, 2016 Interest Expense 160 Interest Payable 160
March 1, 2017 Note Payable 23,520 Cash 23,520
December 1, 2016 Cash 24,000 Note Payable 24,000
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On December 1, 2016, Old Car Co. borrowed money at the bank by signing a 90-day non-interest-bearing note for $24,000 that was discounted at 8%. Which of the following entries is correct?
| December 31, 2016 Interest Expense | 160 | |||
| Discount on Notes Payable | 160 | |||
| December 31, 2016 Interest Expense | 160 | |||
| Interest Payable | 160 | |||
| March 1, 2017 Note Payable | 23,520 | |||
| Cash | 23,520 | |||
| December 1, 2016 Cash | 24,000 | |||
| Note Payable | 24,000 | |||
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