Multiple Choice
Travis County Bank agrees to lend Brickyard Corporation $200,000 on January 1.Brickyard signs a $200,000,4%,9-month note.Interest is due at maturity on September 30.The company's fiscal year ends June 30 and adjusting entries are recorded at that time only. What journal entry will Brickyard make when paying the note at maturity?
A) Debit Cash and credit Notes Payable for $200,000.
B) Debit Cash and credit Notes Payable for $206,000.
C) Debit Notes Payable and credit Cash for $206,000.
D) Debit Notes Payable and credit Cash for $200,000.
Correct Answer:
Verified
Correct Answer:
Verified
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