The Journal Entry to Record the Payment of an Interest-Bearing

question 111

Multiple Choice

The journal entry to record the payment of an interest-bearing note is

• A) debit Cash; credit Notes Payable
• B) debit Accounts Payable; credit Cash
• C) debit Notes Payable and Interest Expense; credit Cash
• D) debit Notes Payable and Interest Receivable; credit Cash

---

Definitions:

Highway Trucks

Trucks specifically designed for long-distance freight transport over roads, usually offering higher comfort and efficiency for such journeys.

Rebuilt in the Field

Refers to the process of repairing, restoring, or assembling machinery or equipment directly at the site of use or operation.

Cost Effective

Referring to an operation, process, or product that provides the best possible outcome or value for the money spent, often used in evaluating financial decisions and investments.

Spring Brake Chamber

A unit in heavy-duty vehicle braking systems that uses spring force to apply parking brakes.