On November 1,Alan Company Signed a 120-Day,8% Note Payable,with a Face

question 136

Multiple Choice

On November 1,Alan Company signed a 120-day,8% note payable,with a face value of $9,000.Alan made the appropriate year-end accrual.What is the journal entry as of March 1 to record the payment of the note assuming no reversing entry was made?

• A)Debit Notes Payable $9,000;debit Interest Payable $120;credit Cash $9,120.
• B)Debit Cash $9,240;credit Notes Payable $9,240.
• C)Debit Notes Payable $9,240;credit Interest Payable $120;credit Interest Expense $120;credit Cash $9,000.
• D)Debit Notes Payable $9,000;debit Interest Payable $120;debit Interest Expense $120;credit Cash $9,240.
• E)Debit Notes Payable $9,000;debit Interest Expense $240;credit Cash $9,240.

---

Definitions:

Ammeter

An instrument used to measure the current in a circuit, usually in amperes.

Voltmeter

An instrument used for measuring electric potential difference between two points in an electric circuit.

Low-impedance

Refers to a circuit or device having a relatively low resistance to the flow of electrical current.

High Power Circuits

Electrical circuits designed to handle and manage high levels of electrical power, often used in industrial applications and power transmission.