On October 1, 2015, Frank, Inc. issued a $28,000, 10%, nine-month interest-bearing note. Assume the necessary adjusting entry was made to accrue interest at the end of the fiscal year, December 31, 2015. The entry to record the payment of the note on July 1, 2016 will include a

A. credit to Notes Payable for $30,100
B. credit to Cash for $28,000
C. debit to Interest Expense for $700
D. debit to Notes Payable for $30,100

Answer: A. credit to Notes Payable for $30,100

Business

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