On January 1, 2018, a business borrowed $18,000 on a five-year, 5% note payable. At December 31, 2018, the business should record A. interest payable of $900. B. note receivable of $18,000. C. cash payment of $18,000. D. nothing. ( The note is already on teh books.
On January 1, 2018, a business borrowed $18,000 on a five-year, 5% note payable. At December 31, 2018, the business should record A. interest payable of $900. B. note receivable of $18,000. C. cash payment of $18,000. D. nothing. ( The note is already on teh books.
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...
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On January 1, 2018, a business borrowed $18,000 on a five-year, 5% note payable. At December 31, 2018, the business should record
A. interest payable of $900.
B. note receivable of $18,000.
C. cash payment of $18,000.
D. nothing. ( The note is already on teh books.
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