On November 1, Alan Company Signed a 120-Day, 8% Note

question 15

Multiple Choice

On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $9,000. Alan made the appropriate year-end accrual on December 31. What is the journal entry as of March 1 to record the payment of the note assuming no reversing entry was made?

• A)Debit Notes Payable $9,000; debit Interest Payable $120; credit Cash $9,120.
• B)Debit Cash $9,240; credit Notes Payable $9,240.
• C)Debit Notes Payable $9,240; credit Interest Payable $120; credit Interest Expense $120; credit Cash $9,000.
• D)Debit Notes Payable $9,000; debit Interest Payable $120; debit Interest Expense $120; credit Cash $9,240.
• E)Debit Notes Payable $9,000; debit Interest Expense $240; credit Cash $9,240.

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