A $20,000,3-Month,8% Note Payable Was Issued on November 1,2015

question 55

Multiple Choice

A $20,000,3-month,8% note payable was issued on November 1,2015.Which of the following would be included in the journal entry required on the note's maturity date?

• A) A credit to Note payable for $20,400
• B) A credit to Cash for $10,000
• C) A debit to Interest expense for $133
• D) A debit to Interest payable for $133

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Definitions:

Pound Sterlings

The official currency of the United Kingdom, commonly known as the pound and denoted by GBP, which is one of the world's major currencies.

Bonds

Debt securities issued by entities such as governments or corporations to finance projects or operations, with the promise to repay the principal along with interest.

Open Economy

An economy that engages in international exchange of goods, services, and capital by allowing cross-border trade and investment.

GDP

Gross Domestic Product, the total market value of all final goods and services produced within a country in a specific time period, used as an indicator of economic health.