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. 127,500 127,500 Cash..... b. The answer does not exist С. Notes Payable. 125,000 Interest Expense. 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

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
Transcribed Image Text: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
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