A business borrowed $59,037 on March 1 of the current year by signing a 30 day, 11% interest bearing note. Assuming a 360-day year, when the note is paid on March 31, the entry to record the payment should include a debit to Interest Payable for $541 debit to Interest Expense for $541 credit to Cash for $59,037 credit to Cash for $65,531
A business borrowed $59,037 on March 1 of the current year by signing a 30 day, 11% interest bearing note. Assuming a 360-day year, when the note is paid on March 31, the entry to record the payment should include a debit to Interest Payable for $541 debit to Interest Expense for $541 credit to Cash for $59,037 credit to Cash for $65,531
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter17: Accounting For Notes And Interest
Section: Chapter Questions
Problem 1CE
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A business borrowed $59,037 on March 1 of the current year by signing a 30 day, 11% interest bearing note. Assuming a 360-day year, when the note is paid on March 31, the entry to record the payment should include a
debit to Interest Payable for $541
debit to Interest Expense for $541
credit to Cash for $59,037
credit to Cash for $65,531
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