Question
On May 28, Jackson Jones borrowed $40,000 cash and gave the lender a 5%, 90 day note. Which of the following is the correct journal
On May 28, Jackson Jones borrowed $40,000 cash and gave the lender a 5%, 90 day note. Which of the following is the correct journal entry to record the payment of the note on the maturity date?
1. CASH PAYMENT OF 39,500
2. INTEREST EXPENSE OF 2,000 SHOULD BE RECORDED
3. INTEREST EXPENSE OF 500 SHOULD BE RECORDED
4. INTEREST REVENUE OF 2,000 SHOULD BE RECORDED
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Handbook Of Communication Audits For Organisations
Authors: Owen D.W. Hargie, Dennis Tourish
1st Edition
0415186420, 978-0415186421
