Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. on november 1, alan company signed a 120-day, 9% n

On November 1, Alan Company signed a 120-day, 9% note payable, with a face value...

60.1K

Verified Solution

Question

Finance

On November 1, Alan Company signed a 120-day, 9% note payable, with a face value of $54,000. Alan made a December 31 year-end accrual for interest earned. What is the journal entry as of March 1to record the payment of the note? (Use 360 days a year.) Debit Notes Payable $ 54,000; debit Interest Expense $ 1,620; credit $55,620. Debit Notes Payable $54,000 ; debit Interest Payable $810; credit Cash $ 54,810 . Debit Notes Payable $54,000 ; debit Interest Expense $ 810; debit Interest Payable $ 810; credit Cash $ 55,620 .
image
On November 1, Alan Company signed a 120-day, 9% note payable, with a face value of $54,000. Alan made a December 31 year-end accrual for interest earned. What is the journal entry as of March 1 to record the payment of the note? (Use 360 days a year.) Debit Notes Payable $54,000; debit Interest Expense $1,620; credit Cash $55,620. Debit Notes Payable $54,000; debit Interest Payable $810; credit Cash $54,810. Debit Notes Payable $54,000; debit Interest Expense $810; debit Interest Payable $810; credit Cash $55,620

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Statistics
1.2K views

in a very large history class O7 483 The variance of these data is 34...

Medical Sciences
1.2K views

Jim is lifting weights. Holding a 20lb weight down by his side, he bends his arm...

Geometry
1.2K views

Siven polynomial is below f x x 4x 6x 36 a 2 is a zero...

Calculus
1.2K views

Use differentials to estimate the amount of paint needed (in m) to apply a coat...

Calculus
1.2K views

5 find the equation of the tangent line to the stroph offCX at the given...

Algebra
1.2K views

Find the inverse of the following function g x 2 1 log x 1 3...

Accounting
1.2K views

Tombro Industries is in the process of automating one of its plants and...

Accounting
1.2K views

On January 1, 2020, Owl Co. granted 100,000 stock options to buy 100,000, $2 par,...

Accounting
1.2K views

the following question in 2 double spaced pages approximately. My chosen company is wegmans food...

Accounting
1.2K views

Zen Arcade paid the weekly payroll on January 2 by debiting Salaries and Wages Expense...

Accounting
1.2K views

Please use the rate percentage tables I have provided, to answer the question ...

Finance
1.2K views

help please ...