Question

On July 15, 2015, Coolidge Company paid its 30-day, 10 percent, $600 note payable to Ross Company. Prepare the July 15 journal entry for Coolidge by selecting the account names and dollar amounts from the drop-down menus. If there are multiple debits or credits, enter your answers in alphabetical order.

Answer 1

Dr Notes Payable account 600

Dr Interest Expense account 5

Cr Cash account 605

Step-by-step explanation:

The total interest due = $600 x 10% x 1/12 =$5

Notes payable is a liability account and it decreases, so it should be debited.

All expenses are debited.

Cash is an asset account and it decreases, so it should be credited.