When a Company Pays an Interest-Bearing Note Payable on the Due

question 35

Multiple Choice

When a company pays an interest-bearing note payable on the due date, the journal entry on the books of the company making the payment includes

• A) debiting Notes Payable and Interest Expense and crediting Cash.
• B) debiting Cash and crediting Notes Payable and Interest Expense.
• C) debiting Notes Payable and Cash and crediting Interest Revenue.
• D) debiting Cash and Interest Expense and crediting Notes Payable.