On January 1, Parma, Inc. borrowed $100,000 cash from First National and issued a two-year promissory note in that amount. Interest of $5,000 was payable semiannually on June 30 and December 31. Which account will be debited when Parma records the entry relating to each of the four interest payments?

Answer rating: 100% (QA)

Journal Entry Date Particular Amount Amount 1Jan Cash 10000000 Promissiory Note 10000000 ... View the full answer