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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![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F90410058-f730-4a27-a841-754869903893%2F1237c6fd-bed1-4977-88e4-18ae70d81a48%2F4pt5dxu_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.
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