Use This Information to Answer the Following Question $\$ 25,000$

question 108

Multiple Choice

Use this information to answer the following question. The transactions below pertain to Broyer Company,whose fiscal year ends September 30.
Sept. 10 Received cash for a 90-day, 12 percent, $\$ 25,000$ note payable. Interest is in adclition to the face value.
30 Made end-of-year adjusting entry to accrue interest expense.
The entry to record the September 10 transaction (amounts rounded) is:

• A)
• \[\begin{array} { l c }
• \text { Cash } & 740 \\
• \text { Notes Payable } && 740
• \end{array}\]
• B)
• \[\begin{array} { l l l }
• \text { Cash } & 24,260 \\
• \quad \text { Accounts receivable } & & 24,260
• \end{array}\]
• C)
• \[\begin{array} { l c }
• \text { Cash } & 24,260 \\
• \text { Notes Payable } &&24,260
• \end{array}\]
• D)
• \[\begin{array} { l r }
• \text { Cash } & 25,000 \\
• \quad \text { Notes Payable } && 25,000
• \end{array}\]

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