A business makes a payment of $1,400 on a note payable. Which of the following journal entries would be recorded?
A) Cash is credited and Notes Payable is debited for $1,400.
B) Notes Payable is credited and Cash is debited for $1,400.
C) Cash is credited and Financing Expense is debited for $1,400.
D) Cash is debited and Financing Revenue is credited for $1,400.
A
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a. Culture b. Perspective-taking c. Communication d. Media
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What will be an ideal response?
Land Shoes Land Shoes received a promissory note from a customer on July 1, 2012. The face value of the note is $45,000; the terms are 12 months and 10% annual interest. Refer to the information provided for Land Shoes. How much interest revenue will Land Shoes recognize for the year ended December 31, 2012?
A) $ 0 B) $9,000 C) $2,250 D) $4,500