The journal entry required on the company's books to record the note payable on July 1, 20X0 would include which of the following?
A) A credit to notes payable for $12,000.
B) A credit to notes payable for $12,960.
C) A debit to cash for $11,040.
D) A debit to interest expense for $960.

Question

Quizplus · Accepted Answer

The journal entry to record a note payable typically involves crediting the notes payable account for the principal amount of the note, which is $12,000 in this case.

The Journal Entry Required on the Company's Books to Record