Question

West County Bank agrees to lend Pharoah Company $432000 on January 1. Pharoah Company signs a $432000, 6%, 6-month note. What entry will Pharoah Company make to pay off the note and interest at maturity assuming that interest has been accrued to June 30?

Answer 1

D C

Accrued expenses 12960

Cash 12960

Step-by-step explanation:

capital % interest Interest

432000 6% 12960 six months