On October 1, $10,000 was borrowed on a 90 day, $10,000, 4% note. The journal entry on December 31 includes Debit Interest Debit Cash, Credit Interest Payable Expense, Credit Interest Payable Debit Interest Debit Interest Payable, Credit Interest Expense Expense, Credit Cash

On October 1, $10,000 was borrowed on a 90 day, $10,000, 4% note. The journal entry on December 31 includes Debit Interest Debit Cash, Credit Interest Payable Expense, Credit Interest Payable Debit Interest Debit Interest Payable, Credit Interest Expense Expense, Credit Cash

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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On October 1, $10,000 was
borrowed on a 90 day, $10,000, 4%
note. The journal entry on
December 31 includes
Debit Interest
Debit Cash, Credit
Interest Payable
Expense, Credit
Interest Payable
Debit Interest
Debit Interest
Payable, Credit
Interest Expense
Expense, Credit
Cash

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