Determine the principal to be paid on maturity


The statement is " A company took out a 9 month, 7.5% $40,000 note on december 1, 2014 with interest and principal to be paid on maturity.

Since its an adjusting entry, would I note debit cash and credit notes payable for the full amount and just debit interest expense and credit interest payable for the 250?? or is that not right either?

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Accounting Basics: Determine the principal to be paid on maturity
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