Travis County Bank agrees to lend Brickyard Corporation $200,000 on January 1. Brickyard signs a $200,000, 4%, 9-month note. Interest is due at maturity on September 30. The company's fiscal year ends June 30 and adjusting entries are recorded at that time only. What journal entry will Brickyard make when paying the interest at maturity? Multiple Choice Debit Interest Expense for $6,000 and Cash for $206,000. Debit Interest Payable for $4,000, debit Interest Expense for $2,000, and credit Cash for $6,000. Debit Notes Payable and credit Cash for $206,000. Debit Interest Expense for $4,000, and credit Cash for $4,000.

Travis County Bank agrees to lend Brickyard Corporation $200,000 on January 1. Brickyard signs a $200,000, 4%, 9-month note. Interest is due at maturity on September 30. The company's fiscal year ends June 30 and adjusting entries are recorded at that time only. What journal entry will Brickyard make when paying the interest at maturity? Multiple Choice Debit Interest Expense for $6,000 and Cash for $206,000. Debit Interest Payable for $4,000, debit Interest Expense for $2,000, and credit Cash for $6,000. Debit Notes Payable and credit Cash for $206,000. Debit Interest Expense for $4,000, and credit Cash for $4,000.

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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