Martinez Co. borrowed $69,589 on March 1 of the current year by signing a 60-day, 6%, interest-bearing note. Assuming a 360-day year, when the note is paid on April 30, the entry to record the payment should include a a.debit to Interest Payable for $696. b.debit to Interest Expense for $696. c.credit to Cash for $69,589. d.credit to Cash for $73,764.
Martinez Co. borrowed $69,589 on March 1 of the current year by signing a 60-day, 6%, interest-bearing note. Assuming a 360-day year, when the note is paid on April 30, the entry to record the payment should include a a.debit to Interest Payable for $696. b.debit to Interest Expense for $696. c.credit to Cash for $69,589. d.credit to Cash for $73,764.
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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Martinez Co. borrowed $69,589 on March 1 of the current year by signing a 60-day, 6%, interest-bearing note. Assuming a 360-day year, when the note is paid on April 30, the entry to record the payment should include a
a.debit to Interest Payable for $696.
b.debit to Interest Expense for $696.
c.credit to Cash for $69,589.
d.credit to Cash for $73,764.
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