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On October 1, 2010, Pennington Company Issued a $40,000, 10

Question 188

Multiple Choice

On October 1, 2010, Pennington Company issued a $40,000, 10%, nine-month interest-bearing note. Assuming interest was accrued in June 30, 2011, the entry to record the payment of the note on July 1, 2011, will include a:


A) debit to Interest Expense of $1,000.
B) credit to Cash of $40,000
C) debit to Interest Payable of $3,000.
D) debit to Notes Payable of $43,000.

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