On September 1, Eli's Painting Service borrows $150,000 from National Bank on a 4-month, $150,000, 6% note. The entry by Eli's Painting Service to record payment of the note and accrued interest on January 1 is

a. Notes Payable....................................................................... 153,000

Cash.............................................................................. 153,000

b. Notes Payable....................................................................... 150,000

Interest Payable..................................................................... 3,000

Cash.............................................................................. 153,000

c. Notes Payable....................................................................... 150,000

Interest Payable..................................................................... 9,000

Cash.............................................................................. 159,000

d. Notes Payable....................................................................... 150,000

Interest Expense.................................................................... 3,000

Cash.............................................................................. 153,000


b. Notes Payable....................................................................... 150,000

      Interest Payable.....................................................................          3,000

               Cash..............................................................................                           153,000

Business

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