On december 1, 2016, escobar consulting, which uses a calendar year as its fiscal year, signs a $4,000, 12%, four-month note payable. journalize the entry to record the payment of the note and entire interest on april 1, 2017.

The journal entry to record the payment of the note and entire interest on april 1, 2017 is as follows; Debit Notes Payable $4,000, Debit Interest Expense 120, Debit Interest Payable 40, Credit Cash $4,160.

April 1,2017

Notes payable $4,000

Interest expense $120

Interest payable $40

Cash $4,160