Kizspy Question: 35
(Choose 1 answer)
FJOVERFLOW.COM
On September 1, Deck Company signed a $50,000, 90-day, 8% note payable with Central Savings Bank. What
is the journal entry that should be recorded by Deck upon maturity of the note?
A. Debit Interest Expense $1,000; credit Interest Payable $1,000.
B. Debit Notes Payable $50,000; credit Interest Revenue $1,000; credit Cash $49,000.
C. Debit Cash $51,000; credit Notes Receivable $51,000.
D. Debit Notes Payable $51,000; credit Cash $51,000.
E. Debit Notes Payable $50,000; debit Interest Expense $1,000; credit Cash $51,000
