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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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.
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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