Quechua Company borrowed $90,000 cash on January 1, 2019, by signing an 8% mortgage note that is to be repaid in 10 equal annual end-of-year payments. The first payment is due on December 31, 2019.
The journal entry to record the first payment will include:
A) A debit to Notes Payable for $7,200
B) A debit to Notes Payable for $13,413
C) A debit to Interest Expense for $13,413
D) A debit to Notes Payable for $6,213
Correct Answer:
Verified
Q95: Bowling Green Associates has outstanding Bonds Payable,
Q96: Foxrun Associates has outstanding Bonds Payable, with
Q97: Hickenlooper Company retired a $900,000, 7% bond
Q98: Hicks Company's Bonds Payable has a balance
Q99: Charlie Company's Bonds Payable has a balance
Q101: Westwood Company borrowed $202,500 cash on January
Q102: On January 1, Alicia Company borrowed $30,000
Q103: On January 1, 2019 Tracey Sisters Company
Q104: Eva Industries issued bonds with a face
Q105: Brahtz Industries issued bonds with a face
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