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On September 1, Tammy Corp. borrowed $70,000 from the Town Bank for five months at 9%. Interest is payable at maturity. The entry Tammy Corp.
On September 1, Tammy Corp. borrowed $70,000 from the Town Bank for five months at 9%. Interest is payable at maturity. The entry Tammy Corp. must make on December 31, its year-end, assuming no prior accruals is 1) Dr. Interest Expense $2,100; Cr. Interest Payable $2,100 2) Dr. Interest Expense $6,300; Cr. Notes Payable $6,300 3) Dr. Interest Expense $2,625; Cr. Notes Payable $2,625 4) Dr. Interest Expense $1,575; Cr. Interest Payable $1,575
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