On January 1, Year 1, Stratton Company borrowed $100,000 on a 10-year, 7% installment note payable. The terms of the note require Stratton to pay 10 equal payments of $14,238 each December 31 for 10 years. The required general journal entry to record the payment on the note on December 31, Year 2 is:
A. Debit Notes Payable $7,000; debit Interest Expense $7,238; credit Cash $14,238.
B. Debit Interest Expense $6,493; debit Notes Payable $7,745; credit Cash $14,238.
C. Debit Notes Payable $10,000; debit Interest Expense $4,238; credit Cash $14,238.
D. Debit Notes Payable $14,238; credit Cash $14,238.
E. Debit Interest Expense $7,000; debit Notes Payable $7,238; credit Cash $14,238.
Answer: B
You might also like to view...
Underestimating the number of tons of a mineral that can be mined over a mineral deposit's life will result in
a. overstated total assets each year. b. overstated net income each year. c. overstated depletion expense each year. d. no effect on total assets each year.
Voice mail messages ________
A) do not require you to consider the design, as they are an oral communication B) are best done spontaneously C) should focus on one topic D) do not require you to leave contact information E) should allude to your main point without becoming too specific, to arouse the recipient's curiosity and ensure a return phone call.
Use the information in Table A.3. Which alternative is BEST, given the matrix payoff?
A) The A alternative would be chosen using the maximin decision rule. B) The B alternative would be chosen using the maximax decision rule. C) The C alternative would be chosen using the Laplace decision rule. D) The C alternative would be chosen using the maximin decision rule.
The general rule in negligence is that a person is under a duty to all others at all times to exercise reasonable care for the safety of others
Indicate whether the statement is true or false