Bondi Bank agrees to lend Tawonga Construction Company Ltd $200 000 on 1 January. Tawonga Construction Company Ltd signs a $200 000, 4%, 9-month note. The entry made by Tawonga Construction Company Ltd on 1 January to record the proceeds and issue of the note is: O Dr Interest Expense 6 000 Dr Cash 194 000 Cr Notes Payable 200 000 O Dr Cash 200 000 Cr Notes Payable 200 000 O Dr Cash 200 000 Dr Interest Expense 6 000 Cr Notes Payable 206 000 O Dr Cash 200 000 Dr Interest Expense 6 000 Cr Notes Payable 200 000 Cr Interest Payable 6 000

Bondi Bank agrees to lend Tawonga Construction Company Ltd $200 000 on 1 January. Tawonga Construction Company Ltd signs a $200 000, 4%, 9-month note. The entry made by Tawonga Construction Company Ltd on 1 January to record the proceeds and issue of the note is: O Dr Interest Expense 6 000 Dr Cash 194 000 Cr Notes Payable 200 000 O Dr Cash 200 000 Cr Notes Payable 200 000 O Dr Cash 200 000 Dr Interest Expense 6 000 Cr Notes Payable 206 000 O Dr Cash 200 000 Dr Interest Expense 6 000 Cr Notes Payable 200 000 Cr Interest Payable 6 000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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