On $10/1/2018,$ Marley Company issues a $3-$year interest bearing note payable with a face value of $$60,000$ to Nelson Company in exchange for equipment. The note has a stated interest rate of $4\%,$ which is compounded annually. Interest payments are due on $10/1$ of each year. Which of the following would be included in Marley's $12/31/2018$ adjusting journal entry related to this note?

Select one:

a$.$ Credit of $$2,400$ to the Interest Payable account $.$

b$.$ Credit of $$600$ to the Interest Payable account

c$.$ Debit of $$2,400$ to the Interest Payable account

d$.$ Credit of $$600$ to the Notes Payable account

On $10/1/2018,$ Marley Company issues a $3-$year interest bearing note payable with a face value of $$60,000$ to Nelson Company in exchange for equipment. The note has a stated interest rate of $4\%,$ which is compounded annually. Interest payments are due on $10/1$ of each year. Which of the following would be included in Marley's $12/31/2018$ adjusting journal entry related to this note?

Select one:

a$.$ Credit of $$2,400$ to the Interest Payable account $.$

b$.$ Credit of $$600$ to the Interest Payable account

c$.$ Debit of $$2,400$ to the Interest Payable account

d$.$ Credit of $$600$ to the Notes Payable account

On $10/1/2018,$ Marley Company issues a $3-$year interest bearing note payable with a face value of $$60,000$ to Nelson Company in exchange for equipment. The note has a stated interest rate of $4\%,$ which is compounded annually. Interest payments are due on $10/1$ of each year. Which of the following would be included in Marley's $12/31/2018$ adjusting journal entry related to this note?

Select one:

a$.$ Credit of $$2,400$ to the Interest Payable account $.$

b$.$ Credit of $$600$ to the Interest Payable account

c$.$ Debit of $$2,400$ to the Interest Payable account

d$.$ Credit of $$600$ to the Notes Payable account

On $10/1/2018,$ Marley Company issues a $3-$year interest bearing note payable with a face value of $$60,000$ to Nelson Company in exchange for equipment. The note has a stated interest rate of $4\%,$ which is compounded annually. Interest payments are due on $10/1$ of each year. Which of the following would be included in Marley's $12/31/2018$ adjusting journal entry related to this note?

Select one:

a$.$ Credit of $$2,400$ to the Interest Payable account $.$

b$.$ Credit of $$600$ to the Interest Payable account

c$.$ Debit of $$2,400$ to the Interest Payable account

d$.$ Credit of $$600$ to the Notes Payable account

On $10/1/2018,$ Marley Company issues a $3-$year interest bearing note payable with a face value of $$60,000$ to Nelson Company in exchange for equipment. The note has a stated interest rate of $4\%,$ which is compounded annually. Interest payments are due on $10/1$ of each year. Which of the following would be included in Marley's $12/31/2018$ adjusting journal entry related to this note?

Select one:

a$.$ Credit of $$2,400$ to the Interest Payable account $.$

b$.$ Credit of $$600$ to the Interest Payable account

c$.$ Debit of $$2,400$ to the Interest Payable account

d$.$ Credit of $$600$ to the Notes Payable account