On November 30, Thatcher Company issued a $12,000, 6%, 6-month note to the National Bank. The entry on Thatcher's books to record the payment of the note at maturity will include a credit to Cash for:

Question

Quizplus · Accepted Answer

The correct entry includes the principal amount of $12,000 plus 6 months of interest at 6% per annum. Interest = $12,000 * 6% * (6/12) = $360. Therefore, the total payment is $12,000 + $360 = $12,360.

On November 30, Thatcher Company Issued a $12,000, 6%, 6-Month