coupon rate . contractual rate . stated rate . effective rate . 14- Multiple Choice Question 78
On October 1 , Steve ’ s Carpet Service borrows $ 250,000 from First National Bank on a 3-month , $ 250,000 , 8 % note . The entry by Steve ’ s Carpet Service to record payment of the note and accrued interest on January 1 is
Notes Payable 255,000 Cash 255,000 Notes Payable 250,000 Interest Payable 5,000 Cash 255,000 Notes Payable 250,000 Interest Payable 20,000 Cash 270,000 Notes Payable 250,000 Interest Expense 5,000 Cash 255,000 15-