Martinez Co. borrowed $58,220 on March 1 of the current year by signing a 60-day, 11%, interest-bearing note. Assuming a 360-day year, when the note is paid on April 30, the entry to record the payment shoul include a Oa, debit to Interest Payable for $1,067. Ob. debit to Interest Expense for $1,067. Oc. credit to Cash for $58,220. Od. credit to Cash for $64,624.
Martinez Co. borrowed $58,220 on March 1 of the current year by signing a 60-day, 11%, interest-bearing note. Assuming a 360-day year, when the note is paid on April 30, the entry to record the payment shoul include a Oa, debit to Interest Payable for $1,067. Ob. debit to Interest Expense for $1,067. Oc. credit to Cash for $58,220. Od. credit to Cash for $64,624.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![Martinez Co. borrowed $58,220 on March 1 of the current year by signing a 60-day, 11%, interest-bearing note. Assuming a 360-day year, when the note is paid on April 30, the entry to record the payment should
include a
Oa. debit to Interest Payable for $1,067.
b. debit to Interest Expense for $1,067.
Oc. credit to Cash for $58,220.
Od. credit to Cash for $64,624.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd210f98b-1208-4eea-a54e-043fbbd49724%2F425bc45a-55c9-4757-993d-7c333bb317ec%2Fo33l3qp_processed.png&w=3840&q=75)
Transcribed Image Text:Martinez Co. borrowed $58,220 on March 1 of the current year by signing a 60-day, 11%, interest-bearing note. Assuming a 360-day year, when the note is paid on April 30, the entry to record the payment should
include a
Oa. debit to Interest Payable for $1,067.
b. debit to Interest Expense for $1,067.
Oc. credit to Cash for $58,220.
Od. credit to Cash for $64,624.
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