On December 1, Watson Enterprises signed a $24,000, 60-day, 4% note payable as replacement of an account payable with Erikson Company. What is the journal entry that should be recorded upon signing the note?
A) Debit Notes Payable $24,000; debit Interest Expense $160; credit Accounts Payable $24,160.
B) Debit Accounts Payable $24,160; credit Notes Payable $24,160.
C) Debit Notes Payable $24,000; debit Interest Expense $160; credit Cash $24,160.
D) Debit Accounts Receivable $24,000; credit Notes Receivable $24,000.
E) Debit Accounts Payable $24,000; credit Notes Payable $24,000.
Correct Answer:
Verified
Q141: During June, Vixen Company sells $850,000 in
Q142: Define liabilities and explain the difference between
Q143: During June, Vixen Company sells $850,000 in
Q144: During August, Boxer Company sells $356,000 in
Q145: All of the following statements related to
Q147: On September 1, Knack Company signed a
Q148: On December 1, Watson Enterprises signed a
Q149: Describe employer responsibilities for reporting payroll taxes.
Q150: What are known current liabilities? Cite at
Q151: If a company has advance subscription sales
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents