Martinez Co. borrowed $58,220 on March 1 of the current year by signing a 60-day, 11%, interest-bearing note. Assuming a 360-day year, when the note is paid on April 30, the entry to record the payment shoul include a Oa, debit to Interest Payable for $1,067. Ob. debit to Interest Expense for $1,067. Oc. credit to Cash for $58,220. Od. credit to Cash for $64,624.

Martinez Co. borrowed $58,220 on March 1 of the current year by signing a 60-day, 11%, interest-bearing note. Assuming a 360-day year, when the note is paid on April 30, the entry to record the payment shoul include a Oa, debit to Interest Payable for $1,067. Ob. debit to Interest Expense for $1,067. Oc. credit to Cash for $58,220. Od. credit to Cash for $64,624.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 1CE

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