Multiple Choice
On October 1, 2017, Pennington Company issued a $90,000, 10%, nine-month interest-bearing note. Assuming interest was accrued in June 30, 2018, the entry to record the payment of the note on July 1, 2018, will include a:
A) debit to Interest Expense of $2,250.
B) credit to Cash of $90,000
C) debit to Interest Payable of $6,750.
D) debit to Notes Payable of $96,750.
Correct Answer:
Verified
Correct Answer:
Verified
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