Accounting Chapter 20

The date a note is due is the

• maturity date of a note

• principal of a note

• date of a note

• time of a note

The person to whom the amount of a note is payable is

• the payee of the note

• the customer

• the account receivable

• none of the above

An amount paid for use of money for a period of time is

• maturity date of a note

• the principal of a note

• the interest

• none of the above

Interest on a promissory note is stated as

• a given amount of money

• a number of cents on the dollar

• a percentage of the principal

• the total of the principal plus the interest

A partial payment made on a note includes

• part of the principal and part of the interest to be paid

• an amount rounded to the nearest dollar

• all principal until the total amount of principal is paid

• all interest until the total interest is paid

The journal entry to pay principal and interest on a note payable is

• debit Notes Payable; credit Cash and Interest Expense

• debit Notes Payable and Interest Expense; credit Cash

• debit Cash; credit Notes Payable and Interest Expense

• debit Cash and Notes Payable; credit Interest Expense

The journal entry for issuing a note payable for an extension of time on an account payable is

• debit Notes Payable; credit Accounts Payable

• debit Accounts Payable; credit Notes Payable

• debit Notes Payable and Interest Expense; credit Cash

• debit Notes Payable; credit Cash

The journal entry to record accepting a note receivable for an extension of time is

• debit Accounts Receivable; credit Notes Receivable

• debit Accounts Receivable; credit Notes Receivable and Interest Income

• debit Notes Receivable; credit Accounts Receivable

• debit Accounts Receivable; credit Notes Receivable

The journal entry to record a dishonored note receivable is

• debit Accounts Receivable; credit Notes Receivable

• debit Notes Receivable; credit Accounts Receivable

• debit Accounts Receivable; credit Notes Receivable and Interest Income

• debit Accounts Receivable; credit Notes Receivable

The most useful evidence of a debt in a court of law is

• an oral promise to pay

• an account receivable

• an account payable

• a signed note