Patrick Trash Haulers borrowed 42,000 on June 1, 2020. The loan had an interest rate of 5%. The principal is to be repaid on April 30, 2021. They made the appropriate adjusting journal entries on December 31, 2021,- the last day of their fiscal year. In recording the payment of the note plus accrued interest at maturity on April 30, 2021, they would: Debit Interest Expense $700. Debit Interest Expense $1,225. O Credit Cash $43,225. Debit Interest Expense $1,925.

Patrick Trash Haulers borrowed 42,000 on June 1, 2020. The loan had an interest rate of 5%. The principal is to be repaid on April 30, 2021. They made the appropriate adjusting journal entries on December 31, 2021,- the last day of their fiscal year. In recording the payment of the note plus accrued interest at maturity on April 30, 2021, they would: Debit Interest Expense $700. Debit Interest Expense $1,225. O Credit Cash $43,225. Debit Interest Expense $1,925.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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