Save & Exit On April 12, Hong Company agrees to accept a 60-day, 6%, $6,900 note from Indigo Company to extend the due date on an overdue account What is the journal entry that Indigo Company would make, when it records payment of the note on the maturity date? (Use 360 days a year.) Multiple Choice Debit Notes Payable $6,900; debit Interest Expense $69, credit Cash $6,969. Debit Notes Payable $6,900; credit Interest Expense $69, credit Cash $6,831. Debit Cash $6,969, credit Interest Revenue $69, credit Notes Receivable $6,900 Debit Notes Payable $6,900, debit Interest Expense $104; credit Cash $7,004. Debit Cash $6,969, credit Interest Revenue $69; credit Notes Payable $6,900

Save & Exit On April 12, Hong Company agrees to accept a 60-day, 6%, $6,900 note from Indigo Company to extend the due date on an overdue account What is the journal entry that Indigo Company would make, when it records payment of the note on the maturity date? (Use 360 days a year.) Multiple Choice Debit Notes Payable $6,900; debit Interest Expense $69, credit Cash $6,969. Debit Notes Payable $6,900; credit Interest Expense $69, credit Cash $6,831. Debit Cash $6,969, credit Interest Revenue $69, credit Notes Receivable $6,900 Debit Notes Payable $6,900, debit Interest Expense $104; credit Cash $7,004. Debit Cash $6,969, credit Interest Revenue $69; credit Notes Payable $6,900

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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On April 12, Hong Company agrees to accept a 60-day, 10%, $5,200 note from Indigo Company to extend the due date on an overdue account payable. What is the journal entry made by Indigo Company to record the transaction? Multiple Choice
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On April 12 Hong co. agrees to accept a 60 day, 6% 6,900 note from indigo co to extend the due date on an overdue account. What is the journal entry the indigo co would make when it record payment of note on maturity date (use 360 days a year)
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