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Michigan Company Paid Wisconsin Company for Merchandise with a $6,400 \quad

Question 52

Multiple Choice

Michigan Company paid Wisconsin Company for merchandise with a $6,400, 90-day, 8% note dated May 10.
If Michigan Company pays the note at maturity, what entry should be made at that time?


A) Notes Payable 6,528
\quad \quad \quad \quad Interest Payable 128
\quad \quad \quad \quad \quad \quad \quad Cash 6,400
B) Cash 6,528
\quad \quad \quad \quad Notes Payable 128
\quad \quad \quad \quad Interest Payable 6,400
C) Notes Payable 6,400
Interest Expense 128
\quad \quad \quad \quad \quad \quad Cash 6,528
D) Notes Payable 6,400
\quad \quad \quad \quad \quad Interest Expense 128
\quad \quad \quad \quad \quad \quad Cash 6,272

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