On Octobe 1, Eli's Carpet Service borrows $125,000 from First National Bank on a 3-month,$125,000, 8% note. The entry by Eli's Carpet Service to record payment of the note and accruedinterest on January 1 isa.Cash.127,500C.Notes Payable.125,000Interest Payable.10,000Cash...135,000d.Notes Payable......125,000Interest Expense..2,500Cash....127,500

A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

On October 1, Eli's Carpet Service borrows $125,000 from First National Bank on a 3-month, $125,000, 8% note. The entry by Eli's Carpet Service to record payment of the note and accr interest on January 1 is a. b. Cash.. 127,500 Notes Payable... 125,000 Interest Payable... 10,000 Cash. 135,000 Notes Payable.... 125,000 Interest Expense... 2,500

On October 1, Eli's Carpet Service borrows $125,000 from First National Bank on a 3-month, $125,000, 8% note. The entry by Eli's Carpet Service to record payment of the note and accr interest on January 1 is a. b. Cash.. 127,500 Notes Payable... 125,000 Interest Payable... 10,000 Cash. 135,000 Notes Payable.... 125,000 Interest Expense... 2,500

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 8SEB: JOURNAL ENTRIES (NOTE ISSUED FOR BANK LOAN) Prepare general journal entries for the following...

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On October 1, Eli's Carpet Service borrows $300,000 from First National Bank on a 5-month, $120,000, 8% note. The entry by Eli's Carpet Service to record payment of the note and accrued interest on January 1 is Select one: a. Notes Payable. 127,500 Cash. 127,500 b. The answer does not exist Fi с. Notes Payable.. Interest Expense.. Ti 125,000 2,500 Cash. 127,500 d. Notes Payable. Interest Payable... 125,000 2,500 Cash.. 127,500 e. Notes Payable... 125,000 Interest Payable.. 10,000 Cash.. 135,000
On October 1, Eli's Carpet Service borrows $300,000 from First National Bank on a 5-month, $120,000, 8% note. The entry by Eli's Carpet Service to record payment of the note and accrued interest on January 1 is uc Select one: a. Notes Payable. 127,500 127,500 Cash.... b. The answer does not exist С. Notes Payable. Interest Expense.. 125,000 2,500 Cash. 127,500 d. Notes Payable. Interest Payable.. 125,000 2,500 Cash. 127,500 e. Notes Payable.. Interest Payable.. 125,000 10,000 Cash 135,000 IBA