On December 1, 2020, Ruby Ltd. borrowed $ 180,000 from their bank, by signing a four-month, 5%
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On December 1, 2020, Ruby Ltd. borrowed $ 180,000 from their bank, by signing a four-month, 5% interest-bearing note. Assuming Ruby has a December 31 year end and does NOT use reversing entries, the journal entry to record payment of this note on April 1, 2021will include a?
debit to Interest Payable of $ 750. | ||
debit to Interest Expense of $ 3,000. | ||
debit to Interest Payable of $ 2,250. | ||
credit to Note Payable of $ 180,000 |
Related Book For
Advanced Accounting
ISBN: 9781260247824
14th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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