Multiple Choice Question 79 Moss County Bank agrees to lend the Oriole Company $

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Multiple Choice Question 79 Moss County Bank agrees to lend the Oriole Company $380000 on Janury 1. Oriole Company signs a $380000 6%, 9-month note, what entry win onie Comany make pay off the note and interest at maturity assuming that interest has been accrued to September 307 O Interest Expense Notes Payable Cash O Interest Payable Notes Payable 17100 380000 397100 11400 380000 5700 Interest Expense Cash O Notes Payable Cash O Notck Payable 397100 397100 397100 380000 17100 Interest Payable Cash 397100 Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Interest payable = 380000 * 6% * 9/12 = 17100

Journal entry at the time of payment to bank:

Notes Payable A/c Dr 380000

Interest payable a/c Dr 17100

To Cash A/c 397100

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