Question

Use the information above to answer the following question. What is the entry to record the payment of interest at the maturity date of the note?

A) Debit Notes Payable for $50,000, debit Interest Expense for $4,500, and credit Cash for $54,500

B) Debit Interest Payable for $1,500, debit Interest Expense for $750, and credit Cash for $2,250

C) Debit Interest Expense for $2,250, and credit Cash for $2,250

A) Debit Interest Expense for $2,000 debit Interest Payable for $2,500, and credit Cash for $4,500

Answer

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