Martin Corp, signed a $253,900, three-month, zero interest-bearing note on November 1, Year 4 for the purchase of inventory. The present value of the note was $250,000. Assuming Martin used a "Discount on Note Payable" account to initially record the note and that i the discount will be amortized equally (straight line) over the 3-month period, the adjusting entry made at December 31, Year 4 should be: Select one: Oa. Interest Expense O b. Interest Expense Oc Note Payable Discount on Notes Payable Discount on Notes Payable Discount on Notes Payable Od. Discount on Notes Payable Interest Expense 1,300 2,600 2,600 1,300 1,300 2,600 2,600 1,300
Martin Corp, signed a $253,900, three-month, zero interest-bearing note on November 1, Year 4 for the purchase of inventory. The present value of the note was $250,000. Assuming Martin used a "Discount on Note Payable" account to initially record the note and that i the discount will be amortized equally (straight line) over the 3-month period, the adjusting entry made at December 31, Year 4 should be: Select one: Oa. Interest Expense O b. Interest Expense Oc Note Payable Discount on Notes Payable Discount on Notes Payable Discount on Notes Payable Od. Discount on Notes Payable Interest Expense 1,300 2,600 2,600 1,300 1,300 2,600 2,600 1,300
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 28E: On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First...
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