A $40,000, Four-Month, 6

question 141

Multiple Choice

A $40,000, four-month, 6.5% note payable was issued on October 1, 2015. Which of the following would be included in the journal entry required on the note's maturity date by the borrower?

• A)a credit to Note payable for $40,867
• B)a credit to Cash for $40,000
• C)a debit to Interest expense for $217
• D)a debit to Interest payable for $217

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