Multiple Choice
Use the following information to answer questions
Mars Company signed a six-month note payable for $20,000 on December 1, 2010 with an interest rate of 6%.The first payment of $3,391.91 is due on January 1, 2011.
-What would the journal entry for December 31, 2010 be?
A) dr.interest expense $100, dr.note payable $ 3,291.91, cr.Cash $ 3,391.91
B) dr.interest expense $600, dr.note payable $ 2,791.91, cr.Cash $ 3,391,91
C) dr.interest expense $100, cr.Interest payable $ 100
D) dr.interest expense $600, cr.Interest payable $ 600
Correct Answer:
Verified
Correct Answer:
Verified
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