On November 1, Carter Company Signed a 120-Day, 10% Note

Multiple Choice

On November 1, Carter Company signed a 120-day, 10% note payable, with a face value of $9,000. Carter made the appropriate year-end accrual. What is the journal entry as of March 1 to record the payment of the note assuming no reversing entry was made?

A) Debit Notes Payable $9,000; debit Interest Payable $150; credit Cash $9,150.
B) Debit Cash $9,300; credit Notes Payable $9,300.
C) Debit Notes Payable $9,300; credit Interest Payable $150; credit Interest Expense $150; credit Cash $9,000.
D) Debit Notes Payable $9,000; debit Interest Payable $150; debit Interest Expense $150; credit Cash $9,300.
E) Debit Notes Payable $9,000; debit Interest Expense $300; credit Cash $9,300.