jayy6863
jayy6863
18.02.2021 • 
Business

On December 1, 2022, Escobar Consulting, which uses a calendar year as its fiscal year, signs a $4,000, 12%, four-month note payable. Journalize the entry to record the payment of the note and entire interest on April 1, 2023. A. Debit Notes Payable $4,160 Credit Interest Expense 160 Credit Cash $4,000
B. Debit Notes Payable $4,160 Credit Cash $4,160 You got it wrong :
C. Debit Notes Payable $4,000 Debit Interest Expense 160 Credit Cash $4,160 This is correct answer :
D. Debit Notes Payable $4,000 Debit Interest Expense 120 Debit Interest Payable 40 Credit Cash $4,160

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