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-