Question
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
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