On Octobe 1, Eli's Carpet Service borrows $125,000 from First National Bank on a 3-month,$125,000, 8% note. The entry by Eli's Carpet Service to record payment of the note and accruedinterest on January 1 isa.Cash.127,500C.Notes Payable.125,000Interest Payable.10,000Cash...135,000d.Notes Payable......125,000Interest Expense..2,500Cash....127,500

A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

On October 1, Eli's Carpet Service borrows $125,000 from First National Bank on a 3-month, $125,000, 8% note. The entry by Eli's Carpet Service to record payment of the note and accr interest on January 1 is a. b. Cash.. 127,500 Notes Payable... 125,000 Interest Payable... 10,000 Cash. 135,000 Notes Payable.... 125,000 Interest Expense... 2,500

On October 1, Eli's Carpet Service borrows $125,000 from First National Bank on a 3-month, $125,000, 8% note. The entry by Eli's Carpet Service to record payment of the note and accr interest on January 1 is a. b. Cash.. 127,500 Notes Payable... 125,000 Interest Payable... 10,000 Cash. 135,000 Notes Payable.... 125,000 Interest Expense... 2,500

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterD: Notes Payable And Notes Receivable

Section: Chapter Questions

Problem 3P

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