Question
On July 1 XYZ, corporation entered into a $100,000 5-year 4.5% installment note with its local bank. The company must make monthly payments of T$20,226.
On July 1 XYZ, corporation entered into a $100,000 5-year 4.5% installment note with its local bank. The company must make monthly payments of T$20,226. The journal entry to record the note payable is:
| Debit Cash $100,000; Credit Interest Expense $226; credit Notes Payable $98,774. | ||
| No entry is required. | ||
| Debit Cash $98,774; Debit Interest Expense $226; credit Notes Payable $100,000. | ||
| Debit Cash $100,000; credit Discount on Bonds Payable $100,000. | ||
| Debit Cash $100,000; credit Note Payable $100,000. |
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Global Strategy
Authors: Mike W. Peng
5th Edition
0357512367, 978-0357512364
