On October 1, 2018, ZZZ Corporation issued an $800,000, 10%

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On October 1, 2018, ZZZ Corporation issued an $800,000, 10%

On October 1, 2018, ZZZ Corporation issued an $800,000, 10%, nine-month interest-bearing note. Assuming interest was accrued in June 30, 2019, the entry to record the payment of the note on July 1, 2019, will include a:

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Answer 1

Answer #1

OPTION B: Credit cash of $860000

EXPLANATION:

Notes payable dr $800000

interest expenses dr $60000

Cash $860000

note:

interest = $800000 x 10% x (9/12) = $60000

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Answer 2

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On October 1, 2018, ZZZ Corporation issued an $800,000, 10%

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On October 1, 2018, ZZZ Corporation issued an $800,000, 10%

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