On December 1, 2023, Old World Deli signed a $300,000, 6% annual interest rate, six month note payable with the amount borrowed plus accrued interest due six months later on June 1, 2024. Old World Deli is on an annual accounting period and records the appropriate adjusting entry for the note on December 31, 2023. What will the general journal entry Old World Deli will record on June 1, 2024 to record the payment of the note plus interest? A. Note Payable Interest Expense Cash B. Note Payable Interest Expense Cash C. Note Payable Interest Payable Interest Expense Cash Debit 300,000 18,000 300,000 9,000 Credit 4 300,000 1,500 7,500 318,000 309,000 309,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Question

karan

subject-Accounting

On December 1, 2023, Old World Deli signed a $300,000, 6% annual interest rate, six month note payable with
the amount borrowed plus accrued interest due six months later on June 1, 2024. Old World Deli is on an annual
accounting period and records the appropriate adjusting entry for the note on December 31, 2023. What will the
general journal entry Old World Deli will record on June 1, 2024 to record the payment of the note plus interest?
Debit
Credit
4
A. Note Payable
Interest Expense
Cash
B. Note Payable
Interest Expense
Cash
C. Note Payable
Interest Payable
Interest Expense
Cash
300,000
18,000
300,000
9,000
300,000
1,500
7,500
318,000
309,000
309,000
Transcribed Image Text:On December 1, 2023, Old World Deli signed a $300,000, 6% annual interest rate, six month note payable with the amount borrowed plus accrued interest due six months later on June 1, 2024. Old World Deli is on an annual accounting period and records the appropriate adjusting entry for the note on December 31, 2023. What will the general journal entry Old World Deli will record on June 1, 2024 to record the payment of the note plus interest? Debit Credit 4 A. Note Payable Interest Expense Cash B. Note Payable Interest Expense Cash C. Note Payable Interest Payable Interest Expense Cash 300,000 18,000 300,000 9,000 300,000 1,500 7,500 318,000 309,000 309,000
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