Business, 09.05.2020 11:57 lailahussain99
Melanie Corp. borrowed $124,000 cash on September 1, 2016, and signed a one-year 6%, interest-bearing note payable. The interest and principal are both due on August 31, 2017, Assume that the appropriate adjusting entry was made on December 31, 2016 and that no adjusting entries have been made during 2017. Which of the following would be the required journal entry to pay the note on August 31, 2017?
A. Notes payable 124,000, Interest expense 7,440, Cash 131,440
B. Interest expense 4,960, Interest payable 2,480, Notes payable 124,000, Cash 131,440
C. Interest expense 7,440, Cash 7,440
D. Interest payable 2,480, Notes payable 124,000, Cash 126,480
Answers: 3
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Melanie Corp. borrowed $124,000 cash on September 1, 2016, and signed a one-year 6%, interest-bearin...
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