Question
On November 1, Alan Company signed a 120-day, 9% note payable, with a face value of $36,000. Alan made the appropriate year-end accrual. What is
On November 1, Alan Company signed a 120-day, 9% note payable, with a face value of $36,000. 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.)
Multiple Choice
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Debit Notes Payable $36,000; debit Interest Expense $1,080; credit Cash $37,080.
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Debit Notes Payable $36,000; debit Interest Payable $540; debit Interest Expense $540; credit Cash $37,080.
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Debit Notes Payable $37,080; credit Interest Payable $540; credit Interest Expense $540; credit Cash $36,000.
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Debit Cash $36,540; credit Notes Payable $36,540.
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Debit Notes Payable $36,000; debit Interest Payable $540; credit Cash $36,540.
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