On October 1, 2022, Mills Company borrowed $94,000 cash on a one-year note that required Mills to pay 9 percent interest and $94,000 principal, both on September 30, 2023. Assuming the note is paid when due in 2023, what is the debit to interest payable when recording the payment of the note?
On October 1, 2022, Mills Company borrowed $94,000 cash on a one-year note that required Mills to pay 9 percent interest and $94,000 principal, both on September 30, 2023. Assuming the note is paid when due in 2023, what is the debit to interest payable when recording the payment of the note?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter9: Current Liabilities And Contingent Obligations
Section: Chapter Questions
Problem 2P: Notes Payable and Effective Interest On November 1,2019, Edwin Inc. borrowed cash and signed a...
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![On October 1, 2022, Mills Company borrowed $94,000 cash on
a one-year note that required Mills to pay 9 percent interest and
$94,000 principal, both on September 30, 2023.
Assuming the note is paid when due in 2023, what is the debit to
interest payable when recording the payment of the note?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fca9ad3a6-fd5b-4d9b-a60c-4d64fb1b93b6%2F94c6cbea-975c-4120-8862-ca6ca3463990%2F49z4uwj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On October 1, 2022, Mills Company borrowed $94,000 cash on
a one-year note that required Mills to pay 9 percent interest and
$94,000 principal, both on September 30, 2023.
Assuming the note is paid when due in 2023, what is the debit to
interest payable when recording the payment of the note?
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