Havier Corporation borrows $1 million from a bank on September 1, Year 1, by signing a 6 percent, nine-month note for the amount borrowed plus accrued interest due nine months later on June 1, Year 2. Which of the following is recorded on June 1, Year 2? $1,045,000 debit to Notes Payable $20,000 credit to Interest Expense $25,000 debit to Interest Payable $1,045,000 credit to Cash How to record the journal entry

Havier Corporation borrows $1 million from a bank on September 1, Year 1, by signing a 6 percent, nine-month note for the amount borrowed plus accrued interest due nine months later on June 1, Year 2. Which of the following is recorded on June 1, Year 2? $1,045,000 debit to Notes Payable $20,000 credit to Interest Expense $25,000 debit to Interest Payable $1,045,000 credit to Cash How to record the journal entry

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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