MiniCompany borrowed $6,000 by signing an 8% interest-bearing 45-day note payable in exchange for an overdue accounts payable. To record this transaction, MiniCompany should prepare a journal entry that includes a:
A) Credit to Accounts Payable for $6,000.
B) Debit to Cash for $6,000.
C) Credit to Notes Payable for $6,000.
D) Debit to Cash for $6,300.
E) Debit to Notes Payable for $6,000.

Question

Quizplus · Accepted Answer

The Answer of MiniCompany borrowed $6,000 by signing an 8% interest-bearing 45-day note payable in exchange for an overdue accounts payable. To record this transaction, MiniCompany should prepare a journal entry that includes a:
A) Credit to Accounts Payable for $6,000.
B) Debit to Cash for $6,000.
C) Credit to Notes Payable for $6,000.
D) Debit to Cash for $6,300.
E) Debit to Notes Payable for $6,000.

MiniCompany Borrowed $6,000 by Signing an 8% Interest-Bearing 45-Day Note