On January 1, 2018, a business borrowed $15,000 on a five-year, 6% note payable. At December 31, 2018, the business should record. A. note receivable of $15,000. B. interest payable of $900. C. cash payment of $15,000. D. nothing. (The note is already on the books.)
On January 1, 2018, a business borrowed $15,000 on a five-year, 6% note payable. At December 31, 2018, the business should record. A. note receivable of $15,000. B. interest payable of $900. C. cash payment of $15,000. D. nothing. (The note is already on the books.)
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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On January 1, 2018, a business borrowed $15,000 on a five-year, 6% note payable. At December 31, 2018, the business should record.
A. note receivable of $15,000.
B. interest payable of $900.
C. cash payment of $15,000.
D. nothing. (The note is already on the books.)
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