Reference no: EM132635602
Problem 1: Hook Co. signed a $12,000, 120-day, 5% interest-bearing note payable at the bank in exchange for cash. Which of the following journal entries should Hook Co. use to record the note?
Multiple Choice
Option 1: Cash12,000 Notes Payable 12,000
Option 2: Cash12,132 Interest Expense132 Notes Payable 12,000
Option 3: Cash12,000 Accounts Payable 12,000
Option 4: Notes Payable12,132 Interest Expense132 Cash 12,000
Option 5: Notes Payable12,000 Cash 12,132 Interest Expense 132
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