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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Question

Vi.2

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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