First National Bank agrees to lend $100,000 on September 1, 2014, if Cole Williams Co. signs a $100,000, 12%, four-month note maturing on January 1. Cole Williams Co prepares financial statements on 31/12, the entry at maturity date (Jan 1, 2015) is. O a. Debit both Interest payable 4,000 and Notes payable 100,000 and credit Cash 104,000 O b. Debit both Interest payable 4,000 and Notes payable 100,000 and credit Accounts payable 104,000 O c. Debit each of Interest payable 3,000, Interest expense 1,000 and Notes payable 100,000 and credit Cash 104,000 O d. Debit both Interest expense 4,000 and Notes payable 100,000 and credit Cash 104,000

First National Bank agrees to lend $100,000 on September 1, 2014, if Cole Williams Co. signs a $100,000, 12%, four-month note maturing on January 1. Cole Williams Co prepares financial statements on 31/12, the entry at maturity date (Jan 1, 2015) is. O a. Debit both Interest payable 4,000 and Notes payable 100,000 and credit Cash 104,000 O b. Debit both Interest payable 4,000 and Notes payable 100,000 and credit Accounts payable 104,000 O c. Debit each of Interest payable 3,000, Interest expense 1,000 and Notes payable 100,000 and credit Cash 104,000 O d. Debit both Interest expense 4,000 and Notes payable 100,000 and credit Cash 104,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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First National Bank agrees to lend $100,000 on September 1, 2014, if Cole
Williams Co. signs a $100,000, 12%, four-month note maturing on January 1. Cole
Williams Co prepares financial statements on 31/12, the entry at maturity date
(Jan 1, 2015) is.
a. Debit both Interest payable 4,000 and Notes payable 100,000 and credit
Cash 104,000
b. Debit both Interest payable 4,000 and Notes payable 100,000 and credit
Accounts payable 104,000
O c. Debit each of Interest payable 3,000, Interest expense 1,000 and Notes
payable 100,000 and credit Cash 104,000
d. Debit both Interest expense 4,000 and Notes payable 100,000 and credit
Cash 104,000

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