Martinez Co. borrowed $71,059 on March 1 of the current year by signing a 60-day, 5%, 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 a.debit to Interest Payable for $592. b.debit to Interest Expense for $592. c.credit to Cash for $71,059. d.credit to Cash for $74,612.

Martinez Co. borrowed $71,059 on March 1 of the current year by signing a 60-day, 5%, 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 a.debit to Interest Payable for $592. b.debit to Interest Expense for $592. c.credit to Cash for $71,059. d.credit to Cash for $74,612.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 1CE

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