Question
On November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $45,000. Alan made the appropriate year-end accrual. What is
On November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $45,000. Alan made the appropriate year-end accrual. What is the journal entry as of March 1 to record the payment of the note assuming no reversing entry was made? (Use 360 days a year.)
Debit Notes Payable $45,000; debit Interest Payable $750; credit Cash $45,750.
Debit Notes Payable $46,500; credit Interest Payable $750; credit Interest Expense $750; credit Cash $45,000.
Debit Notes Payable $45,000; debit Interest Expense $1,500; credit Cash $46,500.
Debit Cash $45,750; credit Notes Payable $45,750.
Debit Notes Payable $45,000; debit Interest Payable $750; debit Interest Expense $750; credit Cash $46,500
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