Answer all questions. 7. Bell Corporation purchases inventory on...
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7. Bell Corporation purchases inventory on February 1, 2019 for $80,000 in exchange for a short-term note payable, due in one year, with interest at 8%. The entry on February 1, 2019 includes a: A. debit to Inventory, $80,000. B. credit to Interest Payable, $6,400. C. credit to Notes Payable, Short-term, $80,000. D. Both A and C Refer to Question #7. On December 31, 2019, the corporation's year end, the amount of accrued interest payable will be: A. $6,400 B. $5,867 C. $533 D. There is no interest accrued until the due date. 8. Refer to Question #7 and #8. On February 1, 2020, the maturity value will be: A. $80,533 B. $85,867 C. $86,400 D. $80,000. 9
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