On September 1, 2021, Allied Moving Corp. borrows $100,000 cash from First National Bank. Alli six-month, 6% promissory note. Interest is payable at maturity. Allied's year-end is December 3 4. The entry on September 1 will include Debit to Notes Receivable for $100,000 Credit to Notes Receivable for $100,000 Debit to Notes Payable for $100,000 C. D. Credit to Notes Payable for $100,000 A. B. 5. The adjusting entry on December 31 will be recorded in the amount of: A. $1,000 B. $4,000 C. $2,000 D. $6,000 6. The entry on March 1 at maturity will include

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Questions #4-6 are based on the following:
On September 1, 2021, Allied Moving Corp. borrows $100,000 cash from First National Bank. Allied signs
a six-month, 6% promissory note. Interest is payable at maturity. Allied's year-end is December 31.
4. The entry on September 1 will include
A.
Debit to Notes Receivable for $100,000
B. Credit to Notes Receivable for $100,000
Debit to Notes Payable for $100,000
C.
D. Credit to Notes Payable for $100,000
5. The adjusting entry on December 31 will be recorded in the amount of:
A. $1,000
B. $4,000
C. $2,000
D. $6,000
6. The entry on March 1 at maturity will include
A. Debit to interest expense for $1,000
B. Debit to interest expense for $2,000
C. Credit to notes payable for $100,000
D. Credit to interest payable for $2,000
Transcribed Image Text:Questions #4-6 are based on the following: On September 1, 2021, Allied Moving Corp. borrows $100,000 cash from First National Bank. Allied signs a six-month, 6% promissory note. Interest is payable at maturity. Allied's year-end is December 31. 4. The entry on September 1 will include A. Debit to Notes Receivable for $100,000 B. Credit to Notes Receivable for $100,000 Debit to Notes Payable for $100,000 C. D. Credit to Notes Payable for $100,000 5. The adjusting entry on December 31 will be recorded in the amount of: A. $1,000 B. $4,000 C. $2,000 D. $6,000 6. The entry on March 1 at maturity will include A. Debit to interest expense for $1,000 B. Debit to interest expense for $2,000 C. Credit to notes payable for $100,000 D. Credit to interest payable for $2,000
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