Question
On December 1, Yorkshire Inc. signed a $9,000, 120 day, 8% note payable. Yorkshire made the appropriate year- end adjusting journal entry on December 31
On December 1, Yorkshire Inc. signed a $9,000, 120 day, 8% note payable. Yorkshire made the appropriate year- end adjusting journal entry on December 31 to accrue $60 of interest expense. What journal entry is needed on the maturity date of March 1 to record their payment of the note? Notes Payable Interest Payable 9,000 60 Interest Expense 180 Cash 9,240 Notes Payable 9,000 Interest Expense 240 Cash 9,240 Notes Payable 9.000 Interest Payable 60 Interest Expense 660 Cash 9.720 Notes Payable 9,240 Interest Payable Interest Expense 60 180 Cash 9,240 Notes Payable Interest Payable Cash 9,000 60 9,060
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