Gravel Corporation borrowed $250,000 from a bank on January 1, 2022, by signing a 10%, six-month note.

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Gravel Corporation borrowed $250,000 from a bank on January 1, 2022, by signing a 10%, six-month note. The journal entry made by Gravel on January 1, 2022, will debit.

a. Interest Expense for $25,000 and credit Interest Payable for $25,000.

b. Cash for $225,000 and credit Notes Payable for $225,000.

c. Interest Expense for $25,000 and credit Cash for $25,000.

d. Cash for $250,000 and credit Notes Payable for $250,000.

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Financial Accounting

ISBN: 9780136899037

13th Edition

Authors: C. William Thomas, Wendy M Tietz

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Question Posted: Feb 18, 2023 09:18 AM

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Gravel Corporation borrowed $250,000 from a bank on January 1, 2022, by signing a 10%, six-month note.

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Financial Accounting

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