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In payment of an open account, Kit-Kat Corporation issued a $5,000, 4%, 3-month note to Ruth Ltd. on July 1. Interest is due at maturity. On Oct 1, Kit-Kat sent notification to Ruth that Kit-Kat is unable to honour the note at this time and will pay at a later date. The fiscal year end for both companies is December 31. The journal entry recorded by Kit-Kat Corporation on Oct 1 should include:

Question 43 options:

Notes Payable			5,000
Interest Payable			200
	Accounts Payable			5,200

Notes Payable			5,000
Interest Payable			50
	Accounts Payable			5,050

Accounts Payable			5,000
	Notes Payable			5,000

Notes Payable			5,000
	Accounts Payable			5,000

None of the above