Question: 33
(Choose 1 answer)
On September 1, Hoa Binh Company borrows $10,000 from ACB Bank by signing a 60-day, 6% note. What is
the correct journal entry to record the payment of the note at maturity?
A. Debit Notes Payable $10,000; Credit Cash $10,000.
B. Debit Notes Payable $10,000; Credit Interest Expense $100; Credit Cash $9,900.
C. Debit Notes Payable $10,000; Debit Interest Expense $100; Credit Cash $10,100.
D. Debit Interest Expense $100; Credit Notes Payable $10,100.
E. Debit Cash $10,100; Credit Notes Receivable $10,000; Credit Interest Revenue $100.
