4 POINTS Madison Bank lends Clark Furniture Company$120,000 on September 1. Clark FurnitureCompany signs a $120,000, 9%, 6-month note.The total cash paid at maturity of the note is:A. $126,200B. $120,000C. $125,400D. $128,000

Step 1: To solve, calculate the interest using the simple interest formula and then add it to the…

Answered: Madison Bank lends Clark Furniture…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterD: Notes Payable And Notes Receivable

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Problem 4P

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Madison Bank lends Clark Furniture Company $120,000 on September 1. Clark Furniture Company signs a $120,000, 9%, 6-month note. The total cash paid at maturity of the note is: A. $126,200 B. $120,000 C. $125,400 D. $128,000