MiniCompany Borrowed $6,000 by Signing an 8% Interest-Bearing 45-Day Note

question 51

Multiple Choice

MiniCompany borrowed $6,000 by signing an 8% interest-bearing 45-day note payable in exchange for an overdue accounts payable. To record this transaction, MiniCompany should prepare a journal entry that includes a:

• A) Credit to Accounts Payable for $6,000.
• B) Debit to Cash for $6,000.
• C) Credit to Notes Payable for $6,000.
• D) Debit to Cash for $6,300.
• E) Debit to Notes Payable for $6,000.