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On October 1, 2022, Mills Company borrowed $94,000 cash on a one-year note that required Mills to pay 9 percent interest and $94,000 principal, both on September 30, 2023. Assuming the note is paid when due in 2023, what is the debit to interest payable when recording the payment of the note?

On October 1, 2022, Mills Company borrowed $94,000 cash on a one-year note that required Mills to pay 9 percent interest and $94,000 principal, both on September 30, 2023. Assuming the note is paid when due in 2023, what is the debit to interest payable when recording the payment of the note?

FINANCIAL ACCOUNTING
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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On October 1, 2022, Mills Company borrowed $94,000 cash on a one-year note that required Mills to pay 9 percent interest and $94,000 principal, both on September 30, 2023. Assuming the note is paid when due in 2023, what is the debit to interest payable when recording the payment of the note?
Transcribed Image Text:On October 1, 2022, Mills Company borrowed $94,000 cash on a one-year note that required Mills to pay 9 percent interest and $94,000 principal, both on September 30, 2023. Assuming the note is paid when due in 2023, what is the debit to interest payable when recording the payment of the note?
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