Shook Builders borrowed $15,000 on April 1, 20X1. The loan has anannual*interest rate of 14%. Shook...

 

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Shook Builders borrowed $15,000 on April 1, 20X1. The loan has an"annual*interest rate of 14%. Shook Builders repaid the loan in full (principal and interest) on January 31, 2OX2. No payments were made on the loan between April 1, 20X1 and January 31, 20X2. The single journal entry to record the repayment of the loan (both principal and interest) on January 31, 20X2 includes which of the following? O A DEBIT Cash for $16,250 OA CREDIT to Note Payable for $15,000 O A DEBIT Interest Expense for $175 A CREDIT Interest Expense for $175 A CREDIT to Interest Payable for $1,575 Shook Builders borrowed $15,000 on April 1, 20X1. The loan has an"annual*interest rate of 14%. Shook Builders repaid the loan in full (principal and interest) on January 31, 2OX2. No payments were made on the loan between April 1, 20X1 and January 31, 20X2. The single journal entry to record the repayment of the loan (both principal and interest) on January 31, 20X2 includes which of the following? O A DEBIT Cash for $16,250 OA CREDIT to Note Payable for $15,000 O A DEBIT Interest Expense for $175 A CREDIT Interest Expense for $175 A CREDIT to Interest Payable for $1,575

Answer rating: 100% (QA)

Loan Amount 15000 Interest rate 14 Period April 1 to Jan... View the full answer