Question
On October 1 you borrow $300,000 in order to build a new facility the loan is for 10 years at 7% interest and semi annual
On October 1 you borrow $300,000 in order to build a new facility the loan is for 10 years at 7% interest and semi annual interest payments are due each April and October. The journal entry to record the insurance of the promissory note (at the beginning) should:
a. debt notes payable for $300,00, debt interest expense 21,000, credit cash for 300,000 and credit interest payable for 21,000
b. Debt cash for $300,000 debt interest expense foor 21,000 creit notes payable for 300,000 and credit interest payable 21,000
c. Debt cash for 300,000 and credit notes payable for 300,000
d. Debt accurred interest for 21,000 and credit cash for 21,000
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