a-company-repays-a-200000-6-10-year-note-payable-at-maturity-including-all-accru

Question

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

Accepted Answer

Debit Notes Payable $$200,000; Debit Interest Payable 12$$,000; Credit Cash $212,000.

Answer

Debit Cash $$212,000; Credit Notes Payable 200$$,000; Credit Interest Payable $12,000.

Answer

Debit Notes Payable $$212,000; Credit Cash 212$$,000.

Answer

Debit Interest Payable $$12,000; Credit Notes Payable 200$$,000; Credit Cash $212,000.

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