On July 15, 2015, Coolidge Company paid its 30-day, 10 percent, $600 note payable to Ross Company. Prepare the July 15 journal entry for Coolidge by selecting the account names and dollar amounts from the drop-down menus. If there are multiple debits or credits, enter your answers in alphabetical order.

Question

Business

Jean Mcclure

8 December, 01:08

On July 15, 2015, Coolidge Company paid its 30-day, 10 percent, $600 note payable to Ross Company. Prepare the July 15 journal entry for Coolidge by selecting the account names and dollar amounts from the drop-down menus. If there are multiple debits or credits, enter your answers in alphabetical order.

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Answers (1)

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Walker Weiss · Answer 1

Dr Notes Payable account 600

Dr Interest Expense account 5

Cr Cash account 605

Explanation:

The total interest due = $600 x 10% x 1/12 = $5

Notes payable is a liability account and it decreases, so it should be debited.

All expenses are debited.

Cash is an asset account and it decreases, so it should be credited.