MODULE 3 HOMEWORK ADJSUTING ENTRIESPLEASE SELECT THE CORRECT ANSWER AND TELL AND SHOW ME HOW YOU ARRIVED AT THAT ANSWER.Money borrowed from the bank carries an interest rate of 6% per year. Interest was last paid a month ago and is due again in another 5 months. The amount borrowed is $20000.1) DR Interest Expense 100          CR Interest Payable 1002) DR Interest Expense 500          CR Interest Payable 5003) DR Interest Expense 100          CR Cash 1004) DR Interest Expense 600          CR Cash 600

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Asked Feb 4, 2020
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MODULE 3 HOMEWORK ADJSUTING ENTRIES

PLEASE SELECT THE CORRECT ANSWER AND TELL AND SHOW ME HOW YOU ARRIVED AT THAT ANSWER.

Money borrowed from the bank carries an interest rate of 6% per year. Interest was last paid a month ago and is due again in another 5 months. The amount borrowed is $20000.
1) DR Interest Expense 100
          CR Interest Payable 100
2) DR Interest Expense 500
          CR Interest Payable 500
3) DR Interest Expense 100
          CR Cash 100
4) DR Interest Expense 600
          CR Cash 600

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Step 1: Adjusting entries:

Adjusting entries indicates those entries, which are passed in the books of accounts at the end of the accounting period. These entries are passed in the books of accounts as...

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