On September 1, 2018, Mills Company borrowed $72000 cash on a one-year note that required Mills to pay 8 percent interest and $72000 principal, both on August 31, 2019. Assuming the note is paid when due in 2019, what is the debit to interest payable when recording the payment of the note?
On September 1, 2018, Mills Company borrowed $72000 cash on a one-year note that required Mills to pay 8 percent interest and $72000 principal, both on August 31, 2019. Assuming the note is paid when due in 2019, what is the debit to interest payable when recording the payment of the note?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On September 1, 2018, Mills Company borrowed $72000 cash on a one-year note that required Mills to pay 8 percent interest and $72000 principal, both on August 31, 2019.
Assuming the note is paid when due in 2019, what is the debit to interest payable when recording the payment of the note?
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