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USE THE FOLLOWING INFORMATION FOR THE NEXT 12 QUESTIONS: Motown signs a Note Payable with BeSolvent Bank and has the following information regarding this transaction:
USE THE FOLLOWING INFORMATION FOR THE NEXT 12 QUESTIONS: Motown signs a Note Payable with BeSolvent Bank and has the following information regarding this transaction: One year note payable singed on 9/1/20x3 One year note payable amount borrowed = $285,000 Annual Interest Rate = 3.00% First interest payment is due and PAID on 11/1/20X3 Second interest payment is due and WILL BE PAID along with the principal repayment on 9/1/20X4 ASSUME ENTIRE PRINCIPAL IS PAID ATE MATURITY (balloon payment). The following journal entry was made on 9/1/20X3: Cash $285,000 Note Payable $285,000 Consider the entry to record the interest due and paid on 11/1/X3. The DEBIT should be to what ACCOUNT
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