On October 1, Eli's Carpet Service borrows $300,000 from First National Bank on a 5-month,$120,000, 8% note. The entry by Eli's Carpet Service to record payment of the note and accruedinterest on January 1 isSelect one:a.Notes Payable.127,500Cash.127,500b. The answer does not existFiс.Notes Payable..Interest Expense..Ti125,0002,500Cash.127,500d.Notes Payable.Interest Payable...125,0002,500Cash..127,500e.Notes Payable...125,000Interest Payable..10,000Cash..135,000

Accrued Interest means the Interest which is already due but not paid with in the specific due…

On October 1, Eli's Carpet Service borrows $300,000 from First National Bank on a 5-month, $120,000, 8% note. The entry by Eli's Carpet Service to record payment of the note and accrued interest on January 1 is Select one: a. Notes Payable. 127,500 127,500 Cash..... b. The answer does not exist С. Notes Payable. 125,000 Interest Expense. 2,500 Cash.. 127,500 d. Notes Payable... Interest Payable.. 125,000 2,500 Cash.. .127,500 e. Notes Payable... Interest Payable. 125,000 10,000 Cash.. 135,000

On October 1, Eli's Carpet Service borrows $300,000 from First National Bank on a 5-month, $120,000, 8% note. The entry by Eli's Carpet Service to record payment of the note and accrued interest on January 1 is Select one: a. Notes Payable. 127,500 127,500 Cash..... b. The answer does not exist С. Notes Payable. 125,000 Interest Expense. 2,500 Cash.. 127,500 d. Notes Payable... Interest Payable.. 125,000 2,500 Cash.. .127,500 e. Notes Payable... Interest Payable. 125,000 10,000 Cash.. 135,000

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

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 14RE: On June 1, Phillips Corporation sold, with recourse, a note receivable from a customer to a bank....

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