On August 1, your company takes a $10,000 note that requires your firm to repay principal and accrued interest of 8% a year at the end of 4 years. Which entry should you record at the end of this year? a. Interest Expense Cash 800 b. Interest Expense Interest Payable c. Interest Expense Interest Payable d. Interest Expense Payable Interest 800 333 333 800 800 467 467

On August 1, your company takes a $10,000 note that requires your firm to repay principal and accrued interest of 8% a year at the end of 4 years. Which entry should you record at the end of this year? a. Interest Expense Cash 800 b. Interest Expense Interest Payable c. Interest Expense Interest Payable d. Interest Expense Payable Interest 800 333 333 800 800 467 467

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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