On October 1, 2019, RED, Inc. made a $60,000 loan to Mayberry Corporation to provide...
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Accounting
On October 1, 2019, RED, Inc. made a $60,000 loan to Mayberry Corporation to provide interim financing. The loan has an interest rate of 8 percent, and is for a period of four months. Mayberry's accounting periods end on December 31. The journal entry Mayberry should make when they make payment for the note payable and the interest on February 1, 2020 includes which of the following? A credit to Interest Payable for $1,200. A debit to Cash for $61,600 A debit to Cash for $61,600. A credit to Notes Payable for $60,000. O A debit to Interest Expense for $400
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