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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![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
800
Cash
800
b. Interest Expense
Interest
Payable
c. Interest Expense
Payable
Interest
Payable
d. Interest Expense
Interest
333
333
800
800
467
467](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0ce123d7-ec28-4713-8995-d1c19687ec94%2Fe79af25e-1832-48d0-8a94-fa84accd117b%2Fqffhcdh_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
800
Cash
800
b. Interest Expense
Interest
Payable
c. Interest Expense
Payable
Interest
Payable
d. Interest Expense
Interest
333
333
800
800
467
467
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