Multiple Choice
Moss County Bank agrees to lend the Sadowski Brick Company $300,000 on January 1. Sadowski Brick Company signs a $300,000, 6%, 9-month note. What entry will Sadowski Brick Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30?
A) Notes Payable 313,500 Cash 313,500
B) Notes Payable 300,000 Interest Payable 13,500
Cash 313,500
C) Interest Expense 13,500 Notes Payable 300,000
Cash 313,500
D) Interest Payable 9,000 Notes Payable 300,000
Interest Expense 4,500
Cash 313,500
Correct Answer:
Verified
Correct Answer:
Verified
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