Answer:
Note payable 75,600 debit
Interest expense 1,134 debit
Cash 76,734 credit
Explanation:
NOTE: it semes you paste possible answer for a differnt questions.However it is possible to determiante a correct answer:
interest will be calculate as follows:
principal x rate x time = interest
we should match rate and time in the same metric, in this case portion of a 360 days years:
75,600 x 0.09 x 60/360 =<em> 1.134</em>
As we take the debt, this interst are expense.
To record this, we will write-off the note principal, post the interest expense and credit the total amount of cash disbursements to pay up the debt.
Note payable 75,600 debit
Interest expense 1,134 debit
Cash 76,734 credit
