Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

ON October 1, 20X1, MarCo signs a one year, 8% note payable for $10000 with principle and interest due on Oct. 1, 20X2. It is

ON October 1, 20X1, MarCo signs a one year, 8% note payable for $10000 with principle and interest due on Oct. 1, 20X2. It is MarCo's only noteoutstanding. On Oct. 2, 20X2, when the note is paid, Mar Co debits note payable and credit Cast for $10,800, the sum of principle and interest. THis error is likely to be found because....

A.) the bank reconciliation will be out of balance when the check clears B.) the trial balance will be out of bal. by $800 C.) the trial bal. will show a balance in Notes Payable the is not normal D.) interest expense will be understated

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Smith and Roberson Business Law

Authors: Richard A. Mann, Barry S. Roberts

15th Edition

1285141903, 1285141903, 9781285141909, 978-0538473637

Students also viewed these Accounting questions