Question
Vaughn Bank agrees to lend Blue Spruce Company $79000 on January 1. Blue Spruce Company signs an $79000, 9-month, 4% note. What entry will Blue
Vaughn Bank agrees to lend Blue Spruce Company $79000 on January 1. Blue Spruce Company signs an $79000, 9-month, 4% note. What entry will Blue Spruce Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30?
| Notes Payable | 81370 | ||
| Cash | 81370 |
| Notes Payable | 79000 | ||
| Interest Payable | 2370 | ||
| Cash | 81370 |
| Interest Expense | 2370 | ||
| Notes Payable | 79000 | ||
| Cash | 81370 |
| Interest Payable | 1580 | ||
| Notes Payable | 79000 | ||
| Cash | 80580 |
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
9th Canadian Edition, Volume 2
470964731, 978-0470964736, 978-0470161012
