On October 1 Eli's Carpet Service Borrows $125000 from First $\begin{array}{lrr} \text {Notes Payable } &127,500\\ \text { Cash } &&127,500\\\end{array}$

question 130

Short Answer

On October 1 Eli's Carpet Service borrows $125000 from First National Bank on a 3-month $125000 8% note. The entry by Eli's Carpet Service to record payment of the note and accrued interest on January a.
$\begin{array}{lrr} \text {Notes Payable } &127,500\\ \text { Cash } &&127,500\\\end{array}$

b.
$\begin{array}{lrr} \text { Notes Payable } &125,000\\ \text { Interest Payable} &2,500\\ \text { Cash} &&127,500\end{array}$

c.
$\begin{array}{lrr} \text {Notes Payable } &125,000\\ \text { Interest Payable} &10,000\\ \text { Cash } &&135,000\end{array}$

d.
$\begin{array}{lrr} \text { Notes Payable} &125,000\\ \text { Interest Expense } &2,500\\ \text { Cash } &&127,500\end{array}$

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Definitions:

Divide the Group

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Limiting access or entry to a group or organization to certain individuals based on specific criteria.

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A branch of psychology focused on studying the relationship between organisms and their environment, emphasizing the importance of natural contexts for understanding behavior.

Behavior Settings

Specific places or contexts where a distinct and predictable pattern of behavior occurs, influenced by the physical and social environment.