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On November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $51,000. Alan made a December 31 year-end accrual for interest earned. What is the journal entry as of March 1 to record the payment of the note? (Use 360 days a year.)

Multiple Choice

Debit Notes Payable $51,000; debit Interest Payable $850; credit Cash $51,850.


Debit Cash $51,850; credit Notes Payable $51,850.


Debit Notes Payable $51,000; debit Interest Payable $850; debit Interest Expense $850; credit Cash $52,700.


Debit Notes Payable $51,000; debit Interest Expense $1,700; credit Cash $52,700.


Debit Notes Payable $52,700; credit Interest Payable $850; credit Interest Expense $850; credit Cash $51,000.

Sagot :

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