Question: Greenco signed a 9-year note payable on January 1, 2024, of $540,000. The note requires annual principal payments each December 31 of $60,000 plus interest

Greenco signed a 9-year note payable on January 1, 2024, of $540,000. The note requires annual principal payments each December 31 of $60,000 plus interest at 12% The entry to record the annual payment on December 31, 2028, includes K O A. a debit to Interest Expense for $64,800 O B. a credit to Notes Payable for $60,000 O C. a credit to Cash of $124,800 O D. a debit to Interest Expense for $36,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!