Answered: Bill's Barber shop signed a one-year 7%…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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Bill's Barber shop signed a one-year 7% bak loan payable in the amount of 5,000 on April 1, 2022.Interest is due at maturity.The adjusting journal entry on December 31, 2022, assuming adjusting entries were not previously made, would consist of

Bill's Barber Shop signed a one-year 7% bank loan payable in the amount of $5,000 on April 1, 2022. Interest is due at maturity. The
adjusting journal entry on December 31, 2022, assuming adjusting entries were not previously made, would consist of
O a debit to Interest Expense for $263 and a credit to Interest Payable for $263.
O a debit to Bank Loan Payable for $208 and a credit to Interest Payable for $208.
O a debit to Interest Expense for $350 and a credit to Interest Payable for $350.
O a debit to Interest Expense for $208 and a credit to Bank Loan Payable for $208.
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