Jones borrowed $960 from the bank, issuing a 12.5%, 4-month promissory note. assuming that the note is issued and paid in the same accounting period, jones’ entry on the date of payment will include a a. debit to notes payable for $960. b. debit to interest payable for $40. c. credit to cash for $960. d. debit to interest receivable for $40

(A). A Debit to Notes Payable for $960

Explanation:

In case of a promissory note, there are three parties to it, namely,

Upon issue of promissory note, in the books of the maker (Jones), the entry is,

Name Of The Bank A/C                    Dr. $960

      To Notes Payable A/C                              960

(Being a promissory note issued to bank against a payment of $960)

Upon maturity i.e date of payment, the entry would be,

Notes Payable A/C                           Dr.  $960

     To Cash/Bank A/C                                      960

(Being payment of promissory note honored)

Thus, the correct answer would be, (A) a debit to notes payable account for $960.

answer; i believe the correct answer is (4.0);

the answer is b for dog