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

question 71

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? (Use 360 days a year.)

• 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.

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