Explain SHOW WORK 16. On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $9,000. Alan 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? (Use 360 days a year.)

a. Debit Notes Payable $9,240; credit Interest Payable $120; credit Interest Expense $120; credit Cash $9,000.

b. Debit Notes Payable $9,000; debit Interest Payable $120; credit Cash $9,120.

c. Debit Notes Payable $9,000; debit Interest Expense $240; credit Cash $9,240.

d. Debit Notes Payable $9,000; debit Interest Payable $120; debit Interest Expense $120; credit Cash $9,240.

e. Debit Cash $9,240; credit Notes Payable $9,240.

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17 May, 20:37

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Samantha Jensen · Answer 1

c. Debit Notes Payable $9,000; debit Interest Expense $240; credit Cash $9,240.

Explanation:

Interest Expense = $9,000 x 0.08 x 120 / 360 = $240