On September 1, 2019, Melanie Corp. borrowed $101,000 in cash and executed a 6-percent, interest-bearing note payable. Both the principle and interest are due on August 31, 2020. Assume that the correct adjusting entry was submitted on December 31, 2019, and that no more adjusting entries were made in 2020. What journal entry would need to be made in order to pay the debt on August 31, 2020? Multiple Options Interest is due 2,020 Payable Notes 101,000 Cash 103,020 Payable Notes 101,000 6,060 in interest costs 107,060 in money 6,060 in interest costs, 6,060 in cash Cost of interest: $4,040 Interest is due 2,020 Payable Notes 101,00 Cash 107,060
On September 1, 2019, Melanie Corp. borrowed $101,000 in cash and executed a 6-percent, interest-bearing note payable. Both the principle and interest are due on August 31, 2020. Assume that the correct adjusting entry was submitted on December 31, 2019, and that no more adjusting entries were made in 2020. What journal entry would need to be made in order to pay the debt on August 31, 2020? Multiple Options Interest is due 2,020 Payable Notes 101,000 Cash 103,020 Payable Notes 101,000 6,060 in interest costs 107,060 in money 6,060 in interest costs, 6,060 in cash Cost of interest: $4,040 Interest is due 2,020 Payable Notes 101,00 Cash 107,060
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On September 1, 2019, Melanie Corp. borrowed $101,000 in cash and executed a 6-percent, interest-bearing note payable. Both the principle and interest are due on August 31, 2020. Assume that the correct adjusting entry was submitted on December 31, 2019, and that no more
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