Solved

Admire County Bank Agrees to Lend Givens Brick Company $600,000

Question 63

Short Answer

Admire County Bank agrees to lend Givens Brick Company $600,000 on January 1. Givens Brick Company signs a $600,000, 8%, 9-month note. What entry will Givens Brick Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30?
 Notes Payable636,000 Cash 636,000Notes Payable 600,000 Interest Payable 36,000Cash 636,000Interest Expense. 36,000 Notes Payable600,000 Cash 636,000 Interest Payable. 24,000 Notes Payable 600,000Interest Expense. 12,000 Cash636,000\begin{array}{lrr} \text { Notes Payable} &636,000\\ \text { Cash } &&636,000\\ \text {Notes Payable } &600,000\\ \text { Interest Payable } &36,000\\ \text {Cash } &&636,000\\ \text {Interest Expense. } &36,000\\ \text { Notes Payable} &600,000\\ \text { Cash } &&636,000\\ \text { Interest Payable. } &24,000\\ \text { Notes Payable } &600,000\\ \text {Interest Expense. } &12,000\\ \text { Cash} &&636,000\end{array}

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents