The entry to record an instalment payment on a non-current note payable is
A) Mortgage Notes Payable Cash
B) Interest Expense Cash
C) Mortgage Notes Payable Interest Expense
Cash
D) Bonds Payable Cash

Question

Quizplus · Accepted Answer

An installment payment on a non-current note payable typically includes both a principal and an interest component. Therefore, the correct entry involves decreasing the liability (Mortgage Notes Payable), recognizing the interest expense (Interest Expense), and reducing cash to reflect the payment made.

The Entry to Record an Instalment Payment on a Non-Current