On October 1,2010, Pennington Company issued a $€ 40,000,10 \%$, nine-month interestbearing note. Assuming interest was accrued in June 30,2011 , the entry to record the payment of the note on July 1,2011 , will include a:

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The interest for nine months is $€ 3,000$ (calculated as $€ 40,000 \times 10\% \times \frac{9}{12}$). Since interest was accrued on June 30, 2011, the entry to record the payment will include a debit to Interest Payable of $€ 3,000$.

On October 1,2010, Pennington Company Issued A €40,000,10%€ 40,000,10 \%€40,000,10% , Nine-Month Interestbearing Note

On October 1,2010, Pennington Company Issued A $€ 40,000,10 \%$ , Nine-Month Interestbearing Note