DOR Company borrowed $10,000 on October 1, 2018 and signed a 2 years notewith a 6% annual interest rate. The company prepares its financial statementyearly at December 31. The adjusting entry at the end of the year 2019 willinclude a: *O Debit of Interest Expense $75O Debit of Interest Expense $150O Credit Interest Payable $600O None of the options

Interest accrued = Value of note * Rate of interest = $10000 * 6% = $600

Answered: adjusting entry at the end of the year…

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adjusting entry at the end of the year 2019

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 5MCQ: Dallas Company loaned to Ewing Company on December 1, 2019. Ewing will pay Dallas $720 of interest...

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Question

DOR Company borrowed $10,000 on October 1, 2018 and signed a 2 years note
with a 6% annual interest rate. The company prepares its financial statement
yearly at December 31. The adjusting entry at the end of the year 2019 will
include a: *
O Debit of Interest Expense $75
O Debit of Interest Expense $150
O Credit Interest Payable $600
O None of the options

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