On November 1, Carter Company Signed a 120-Day, 10% Note

question 66

Multiple Choice

On November 1, Carter Company signed a 120-day, 10% note payable, with a face value of $9,000. Carter made the appropriate year-end accrual. 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 $150; credit Cash $9,150.
• B) Debit Cash $9,300; credit Notes Payable $9,300.
• C) Debit Notes Payable $9,300; credit Interest Payable $150; credit Interest Expense $150; credit Cash $9,000.
• D) Debit Notes Payable $9,000; debit Interest Payable $150; debit Interest Expense $150; credit Cash $9,300.
• E) Debit Notes Payable $9,000; debit Interest Expense $300; credit Cash $9,300.

---

Definitions:

Full-Swing Values

A concept used to describe the strength of one’s values; full-swing values are known, cherished, declared, acted upon, and acted upon habitually.

Ethics

The branch of philosophy concerned with the intent, means, and consequences of moral behavior; derived from the Greek word ethos, referring to a person’s fundamental orientation toward life or inner character.

Human Concern

A focus on the needs, well-being, and rights of human beings, often driving social initiatives and humanitarian efforts.

U.S. Army

The land warfare service branch of the United States Armed Forces, responsible for land-based military operations.