Final answer:
The correct journal entry to record the payment of a 5%, 60-day note at maturity for the remaining balance of equipment purchased is a debit to Notes Payable for $60,000, a debit to Interest Expense for $500, and a credit to Cash for $60,500.
Step-by-step explanation:
The student asked how to record the payment of a note at maturity when a firm purchased equipment for $82,000, paying $22,000 cash, and issued a 5%, 60-day note for the remaining balance of $60,000. The correct journal entry to record the payment of the note at maturity would be both the principal amount of the note and the interest incurred over the 60-day period. To calculate the interest: $60,000 × 5% × (60/365) = $493.15 (rounded to $500 for simplicity). So, the journal entry would be to debit Notes Payable for $60,000, debit Interest Expense for $500, and credit Cash for $60,500.
The other options provided are incorrect because they do not accurately account for both the principal repayment and the interest expense, or they do not reflect the correct amounts.
The correct answer is not explicitly listed among the choices given by the student, but based on the information provided, the closest correct entry would be:
- Debit Notes Payable $60,000
- Debit Interest Expense $500
- Credit Cash $60,500