On December 1, 2013, Sons, Inc. borrowed money at the bank by signing a 90-day non-interest-bearing note for $40,000 that was discounted at 12%. Which of the following entries is not correct?
A) December 31, 2013
Interest Expense 400
Discount on Note Payable 400
B) March 1, 2014
Interest Expense 800
Discount on Note Payable 800
C) December 31, 2013
Discount on Note Payable 400
Interest Expense 400
D) December 1, 2013
Cash 38,800
Discount on Note Payable 1,200
Note Payable 40,000
Correct Answer:
Verified
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