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
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
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
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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