On December 1, 2014, Corby Ltd.borrowed $270,000 from their bank, by signing a four- month, 7% interest bearing note.Assuming Corby has a December 31 year end and does NOT use reversing entries, the journal entry to record payment of this note on April 1, 2015 will include a
A) credit to Note Payable of $270,000.
B) debit to Interest Expense of $6,300.
C) debit to Interest Payable of $4,725.
D) debit to Interest Payable of $1,575.
Correct Answer:
Verified
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