ACC 557 TUTOR Great Stories /acc557tutor.com ACC 557 TUTOR Great Stories /acc557tutor.com | Page 57

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-
Multiple Choice Question 61
Most companies pay current liabilities
by creating long-term liabilities.
out of current assets.
by issuing interest-bearing notes payable.
by issuing stock.
==============================================
ACC 557 Week 7 Chapter 11 (E11-7, E11-13, E11-17, P11-
3A)