A company repays a \$200,000, 6% 10-year note payable at maturity, including all accrued interest. What is the correct journal entry?

• A. Debit Cash \$212,000; Credit Notes Payable \$200,000; Credit Interest Payable \$12,000.
• B. Debit Notes Payable \$212,000; Credit Cash \$212,000.
• C. Debit Notes Payable \$200,000; Debit Interest Payable \$12,000; Credit Cash \$212,000.
• D. Debit Interest Payable \$12,000; Credit Notes Payable \$200,000; Credit Cash \$212,000.

Answer: (C)