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Mission Corp. borrowed $50,000 cash on April 1, 2019, and signed a one-year 12% interest-bearing note payable. The interest and principal are both due on March 31, 2020. 20) Assume that the appropriate adjusting entry was made on December 31, 2019 and that no adjusting entries have been made during 2020. Which of the following would be the required journal entry to pay the entire amount due on March 31, 2020? A) Interest expense XXXNotes payable XXXInterest payable XXXCash XXXB) Interest expense XXX Interest payable XXX Note payable XXX Cash XXX

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Answer:

c.Interest expense      XXX

Interest payable          XXX

Notes payable             XXX

Cash                                        XXX

Explanation:

Debit Interest Expenses (50,000*12%*3/12) = $1,500

Debit interest Payable (50,000*12%*9/12) = $4,500

Debit Notes Payable = $50,000

Credit Cash = (1,400+4,500+50,000) = $56,000

Journal entries are the entries that are recorded for the phase of debit and credit transactions. This means all the incoming cash is recorded as credit and all the outgoing cash is recorded as a debit in the book of entries.

The Journal entry and the working note have been attached below.

Working Notes:

[tex]\text{Debit Interest Expenses}= 50,000\times12\%\times\frac{3}{12} = \$1,500[/tex]

[tex]\text{Debit interest Payable}= 50,000\times12\%\times\frac{9}{12} = \$4,500[/tex]

[tex]\text{Credit Cash} = 1,400+4,500+50,000 = \$56,000[/tex]

To know more about the Journal entries, refer to the link below:

https://brainly.com/question/22715989

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