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ABC signed a 5-year, 9% note payable for $80,000 on May 1, 2012. Which account will be credited when the note paid at maturity? A. Note payable Interest expense B. С. Interest payable D. Cash

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 12MC: Which of the following accounts are used when a short-term note payable with 5% interest is honored...

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Question

ABC signed a 5-year, 9% note
payable for $80,000 on May 1,
2012. Which account will be
credited when the note paid at
maturity?
A. Note payable
В.
Interest expense
С.
Interest payable
D.
Cash

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