Watunga county bank agrees to lend hoffman granite company $600,000 on January 1
ID: 2431870 • Letter: W
Question
Watunga county bank agrees to lend hoffman granite company $600,000 on January 1. Hoffman granite company signs a $60,000, 8%, 9-month note. The entry made by Hoffman granite on January 1 to record the proceeds and issuance of the note is:
A) interest expense............36,000
cash...................................564,000
notes payable..................................................600,000
B) Cash...............................600,000
Notes payable...................................................600,000
C) Cash................................600,000
interest expense...................36,000
notes payable......................................................636,000
D) Cash..................................600,000
interest expense......................36,000
notes payable..........................................................600,000
interest payable........................................................36,000
Explanation / Answer
Answer is B
General Journal Debit Credit Cash $600,000 Notes Payable $600,000Related Questions
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