On October 1, 2021, Mountain View Bakery signed a $400,000, 6%, nine- month note payable with the amount borrowed plus accrued interest due nine months later on July 1, 2022. Mountain View Bakery records the appropriate adjusting entry for the note on December 31, 2021. What amount of cash will be needed to pay back the note payable plus interest on July 1, 2022? A) $400,000 B) $406,000 C) $418,000 D) $422,000

On October 1, 2021, Mountain View Bakery signed a $400,000, 6%, nine- month note payable with the amount borrowed plus accrued interest due nine months later on July 1, 2022. Mountain View Bakery records the appropriate adjusting entry for the note on December 31, 2021. What amount of cash will be needed to pay back the note payable plus interest on July 1, 2022? A) $400,000 B) $406,000 C) $418,000 D) $422,000

Financial Accounting

14th Edition

ISBN:9781305088436

Author:Carl Warren, Jim Reeve, Jonathan Duchac

Publisher:Carl Warren, Jim Reeve, Jonathan Duchac

Chapter14: Long-term Liabilities: Bonds And Notes

Section: Chapter Questions

Problem 11E

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