On May 1, 2020, Zachary Corporation borrowed $2,500 on a two-year, 6% note payable. Interest is due and payable at the end of each six months. Zachary makes all interest payments on schedule. The correct December 31, 2020, adjusting entry would be a. Interest Expense 25 Interest Payable 100 b. Interest Payable Cash 100 c. Interest Expense 25 Cash 25 d. Interest Expense Interest Payable 100 100 25

Intermediate Accounting: Reporting And Analysis
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Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
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Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 28E: On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First...
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9. On May 1, 2020, Zachary Corporation borrowed $2,500 on a two-year, 6% note payable. Interest is
due and payable at the end of each six months. Zachary makes all interest payments on schedule. The
correct December 31, 2020, adjusting entry would be
25
a. Interest Expense
Interest Payable
b. Interest Payable
25
100
Cash
100
с.
Interest Expense
25
Cash
25
d. Interest Expense
Interest Payable
100
100
Transcribed Image Text:9. On May 1, 2020, Zachary Corporation borrowed $2,500 on a two-year, 6% note payable. Interest is due and payable at the end of each six months. Zachary makes all interest payments on schedule. The correct December 31, 2020, adjusting entry would be 25 a. Interest Expense Interest Payable b. Interest Payable 25 100 Cash 100 с. Interest Expense 25 Cash 25 d. Interest Expense Interest Payable 100 100
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