Question: To record the extension of an accounts payable to a note payable, the journal entry would be?

A. Debit Notes Payable, credit Cash

B. Debit Notes Payable, Credit Notes Payable

C. Debit Accounts Payable, Credit Notes Payable

D. Debit Accounts Payable, Credit Cash

Question: To record the payment of a notes payable of $1,000 for 30 days at 9% interest, the journal entry would be?

A. Debit Notes Payable for 1,000 and debit interest expense for 7.50; Credit cash for 1,007.50

B. Debit Accounts Payable for 1,000 and debit interest expense for 7.50; Credit cash for 1,007.50

C. Debit Cash for 1,000 and debit interest expense for 7.50; Credit Notes Payable for 1,007.50

D. Debit Cash for 1,007.50; Credit interest expense for 7.50 and credit Notes Payable for 1,000

Question: The amount of Interest Revenue to be recorded on a $1,000 note for 90 days at 10% interest is?

A. $100

B. $50

C. $25

D. $1,000

Question: Franklin Company acquired a used piece of equipment for $3,000. They paid $100 in brokers fee, $200 for a special installation, and $300 for a three year extended warranty. The amount to capitalize and debit to equipment for this purchase would be?

A. 3,000

B. $3,200

C. $3,600

D. $3,300

Question: What would be the journal entry if a piece of equipment costing $10,000 was purchases on a 60 day notes payable discounted at 6%?

A. Debit Equipment $9,900 and Debit Interest expense for $100; Credit NP for $10,000

B. Debit Equipment for $10,000; Credit NP for $10,000

C. Debit Equipment for $10,000 and Debit Interest expense for $100; Credit NP for $10,100

D. Debit Equipment for $10,000; Credit interest expense for $100 and credit Notes Payable for $9,900