Ask Question
28 January, 09:31

West County Bank agrees to lend the Block Builders Company $100,000 on January 1. Block Builders Company signs a $100,000, 6%, 6-month note.

The entry made by Block Builders Company on January 1 to record the proceeds and issuance of the note is

a. Interest Expense 3,000

Cash. 97,000

Notes Payable 100,000

b. Cash 100,000

Notes Payable 100,000

c. Cash 100,000

Interest Expense 3,000

Notes Payable 103,000

d. Cash 100,000

Interest Expense 3,000

Notes Payable 100,000

Interest Payable 3,000

+5
Answers (1)
  1. 28 January, 11:12
    0
    The correct answer is B.

    Explanation:

    Giving the following information:

    West County Bank agrees to lend the Block Builders Company $100,000 on January 1. Block Builders Company signs a $100,000, 6%, 6-month note.

    The adjusting entry is:

    Cash 100,000

    Notes payable 100,000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “West County Bank agrees to lend the Block Builders Company $100,000 on January 1. Block Builders Company signs a $100,000, 6%, 6-month ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers