Ask Question
31 August, 21:10

The entry by Ken's Painting Service to record payment of the note and accrued interest on January 1 is

a. Notes Payable 50,500 Cash 50,500

b. Notes Payable 50,000 Interest Payable 500 Cash 50,500

c. Notes Payable 50,000 Interest Payable 2,000 Cash 52,000

d. Notes Payable 50,000 Interest Expense 500 Cash 50,500

+1
Answers (1)
  1. 31 August, 23:23
    0
    The completed question is

    On October 1, Ken's Painting Service borrows $50,000 from National Bank on a 3-month, $50,000, 4% note.

    The entry by Ken's Painting Service to record payment of the note and accrued interest on January 1 is

    B) Notes Payable 50,000

    Interest Payable 500

    Cash 50,500

    Explanation:

    Base on the scenario been described in the question, the entry by Ken's Painting Service to record payment of the note and accrued interest on January 1 is going to be notes payable 50,000 and interest payable 50,000. Option b is the answer.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The entry by Ken's Painting Service to record payment of the note and accrued interest on January 1 is a. Notes Payable 50,500 Cash 50,500 ...” 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