On October 1, 2017, Carlos, Inc. borrowed $225,000 by signing a nine-month, 8% note payable. Interest was accrued on December 31, 2017. Prepare the journal entry July, 1, 2017, the date the note was paid
What will be an ideal response
Notes Payable 225,000
Interest Expense [($225,000 x 8%) x 6/12] 9,000
Interest Payable [(225,000 x 8%) x (3/12 )] 4,500
Cash 238,500
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