Question: Multiple choice Question 79 BACK NEXT On October 1, Sam's Painting Service borrows $132000 from National Bank on a 3-month, $132000, 4% note. The payment

 Multiple choice Question 79 BACK NEXT On October 1, Sam's Painting

Multiple choice Question 79 BACK NEXT On October 1, Sam's Painting Service borrows $132000 from National Bank on a 3-month, $132000, 4% note. The payment of the note and accrued interest on January 1 by Sam's Painting Service includes a(n) O Decrease to Notes Payable for $132000, decrease to Interest Payable for $1320, and a decrease to Cash for $133320 O Decrease to Notes Payable and to Cash for $133320. O Decrease to Notes Payable for $132000, and a decrease to Interest Payable for $5280 and a decrease to Cash for $137280. O Decrease to Notes Payable for $132000, an increase to Interest Expense for $1320 and a decrease to Cash for $133320

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!