On January 1, 2020, Alex Company borrowed $45,000 cash from a bank by issuing a 5-month,...

  

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On January 1, 2020, Alex Company borrowed $45,000 cash from a bank by issuing a 5-month, 8% interest-bearing note. The company prepares its financial statements quarterly. On maturity date, interest expense amount is: * O $1,500 O $1,440 O $900 $600 O None of the above On maturity date, the cash paid will be recorded as: * Debit Cash for $49,500 O Credit Cash for $46,500 Debit Cash for $45,900 Credit Cash for $1,500 None of the above On January 1, 2020, Alex Company borrowed $45,000 cash from a bank by issuing a 5-month, 8% interest-bearing note. The company prepares its financial statements quarterly. On maturity date, interest expense amount is: * O $1,500 O $1,440 O $900 $600 O None of the above On maturity date, the cash paid will be recorded as: * Debit Cash for $49,500 O Credit Cash for $46,500 Debit Cash for $45,900 Credit Cash for $1,500 None of the above

Answer rating: 100% (QA)

1 On maturity date interest expense amount is 450008 512 1500 Note Interest is calculated on 45000 ... View the full answer