On August 1, Amy Company borrowed $38,000 from another company on a 6%, one-year note. The journal entry on December 31 would include which of the following?
a. A debit to Notes Payable for $38,000.
b. A debit to Interest Receivable for $950.
c. A credit to Interest Payable for $2,220.
d. A debit to Interest Expense for $950.

Question

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The Answer of On August 1, Amy Company borrowed $38,000 from another company on a 6%, one-year note. The journal entry on December 31 would include which of the following?
a. A debit to Notes Payable for $38,000.
b. A debit to Interest Receivable for $950.
c. A credit to Interest Payable for $2,220.
d. A debit to Interest Expense for $950.

On August 1, Amy Company Borrowed $38,000 from Another Company