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On December 1, 2019, Coke Company Purchased $180,000 of Equipment

Question 63

Multiple Choice

On December 1, 2019, Coke Company purchased $180,000 of equipment by issuing a 120-day, 10% note payable to Bank of Georgia.
Assuming the company's accounting period ends on December 31, the journal entry recorded by Coke Company on the note maturity date will include:


A) Debit to Interest Expense for $4,500
B) Debit to Interest Payable for $4,500
C) Debit to Interest Payable for $3,000
D) Debit to Interest Expense for $1,500

Correct Answer:

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