On January 1, 2024, a business borrowed $12,000 on a five-year, 8% note payable. At December 31, 2024, the business should record O A. interest payable of $960. OB. note receivable of $12,000. OC. cash payment of $12,000. OD. nothing. (The note is already on the books.)

On January 1, 2024, a business borrowed $12,000 on a five-year, 8% note payable. At December 31, 2024, the business should record O A. interest payable of $960. OB. note receivable of $12,000. OC. cash payment of $12,000. OD. nothing. (The note is already on the books.)

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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Question

On January 1, 2024, a business borrowed $12,000 on a five-year, 8% note payable. At December 31, 2024, the
business should record
OA. interest payable of $960.
OB. note receivable of $12,000.
OC. cash payment of $12,000.
OD. nothing. (The note is already on the books.)

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