a-company-repays-a-150000-10-9-month-note-payable-at-maturity-including-all-accr

Question

A company repays a $150,000, 10% 9-month note payable at maturity, including all accrued interest. What is the correct journal entry?

Accepted Answer

Debit Notes Payable $$150,000; Debit Interest Expense 11$$,250; Credit Cash $161,250.

Answer

Debit Notes Payable $$161,250; Credit Cash 161$$,250.

Answer

Debit Interest Expense $$11,250; Credit Notes Payable 150$$,000; Credit Cash $161,250.

Answer

Debit Cash $$161,250; Credit Notes Payable 150$$,000; Credit Interest Expense $11,250.

A company repays a \$150,000, 10% 9-month note payable at maturity, including all accrued interest. What is the correct journal entry?