Question
Wells Fargo Bank agrees to lend the Block Builders Company $200,000 on January 1. Block Builders Company signs a $200,000, 8%, 6-month note. The entry
Wells Fargo Bank agrees to lend the Block Builders Company $200,000 on January 1. Block Builders Company signs a $200,000, 8%, 6-month note.
The entry made by Block Builders Company on January 1 to record the proceeds and issuance of the note is
| A. | Cash .......................................................................... 200,000 Interest Expense...................................................................... 8,000 Notes Payable................................................................. 208,000
| |
| B. | Interest Expense ...................................................................................... 8,000 Cash. ............................................................................................. 192,000 Notes Payable................................................................. 200,000
| |
| C. | Cash ........................................................................... 200,000 Interest Expense...................................................................... 4,000 Notes Payable................................................................. 200,000 Interest Payable.............................................................. 4,000
| |
| D. | Cash ..................................................... 200,000 Notes Payable................................................................. 200,000
|
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Auditing And Assurance Services
Authors: Timothy Louwers, Penelope Bagley, Allen Blay, Jerry Strawser, Jay Thibodeau
8th International Edition
1260570517, 978-1260570519
