On November 1, 2021, JP Designs signed a $300,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1. 2022. JP Desings should record which of the following adjusting entries at December 31, 2021? (Do not round your intermediate calculations.) O Debit Interest Expense and credit Cash, $3,000. O Debit Interest Expense and credit Interest Payable, $3,000. O Debit Interest Expense and credit Cash, $9,000. O Debit Interest Expense and credit Interest Payable, $9,000.

On November 1, 2021, JP Designs signed a $300,000, 6%, six-month note payable with the amount borrowed plus accrued interest due six months later on May 1. 2022. JP Desings should record which of the following adjusting entries at December 31, 2021? (Do not round your intermediate calculations.) O Debit Interest Expense and credit Cash, $3,000. O Debit Interest Expense and credit Interest Payable, $3,000. O Debit Interest Expense and credit Cash, $9,000. O Debit Interest Expense and credit Interest Payable, $9,000.

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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