On December 1, 2010, Young Co. borrowed money at the bank by signing a 90-day non-interest-bearing note for $24,000 that was discounted at 8%. Which of the following entries is correct? Answer March 1, 2011 Note Payable 23,520 Cash 23,520 December 31, 2010 Interest Expense 160 Interest Payable 160 December 1, 2010 Cash 24,000 Note Payable 24,000 December 31, 2010 Interest Expense 160 Discount on Notes Payable 160

On December 1, 2010, Young Co. borrowed money at the bank by signing a 90-day non-interest-bearing note for $24,000 that was discounted at 8%. Which of the following entries is correct?

Answer

		March 1, 2011 Note Payable            23,520    Cash                          23,520
		December 31, 2010 Interest Expense           160    Interest Payable                 160
		December 1, 2010 Cash                    24,000    Note Payable                  24,000
		December 31, 2010 Interest Expense           160    Discount on Notes Payable        160

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