On July1, ABC Company borrows $100,000 cash from the First Bank. The terms of the...
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Accounting
On July1, ABC Company borrows $100,000 cash from the First Bank. The terms of the loan are, principal plus interest is due in 3 months. The interest rate is 6% annually. The journal entry to record the payment at maturity would include:
A.) A credit to cash of $101,500.
B.) A debit to cash of $101,500.
C.) A debit to Notes Payable of $101,500.
D.) A credit to Interest payable of $1,500
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