On September 1, 2015, Daylight Donuts signed a $150,000, 10%,


Question Description:

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On September 1, 2015, Daylight Donuts signed a $150,000, 10%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2016. Daylight Donuts records the appropriate adjusting entry for the note on December 31, 2015. In recording the payment of the note plus accrued interest at maturity on March 1, 2016, Daylight Donuts would (Do not round your intermediate calculations): Debit interest expense, $7,500 Debit interest expense, $5,000 Debit interest expense, $2,500 Debit interest payable, $2,500

Answer

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