Question

On november 30, 2015, vicario, inc., paid the principal and interest owed on a 90-day, 6 percent, $100,000 note to first national bank that was dated september 1, 2015. prepare the necessary journal entry for vicario when this note matures by selecting the account names and dollar amounts from the drop-down menus. if there are multiple debits or multiple credits, i.e. a compound entry, then the accounts should be listed in alphabetical order.

Answer 1

Answer:

Dr Notes Payable(Principal amount) $100,000

Dr Interest Expense $1500

Cr Cash $101,500

Explanation:

Vicario, inc.,

Journal entry

Dr Notes Payable(Principal amount) $100,000

Dr Interest Expense $1500

($100,000 x 6% x 90/360)

Cr Cash $101,500

( $100,000 + $1,500).