ABC Company issued a promissory note with the following terms: Principal: P100,000 Date of note: December 16, 2020 Term: 60 days Rate: 15% What will be the adjusting entry on December 31, 2020? Select the correct response: Dr. Interest Receivable 2,500; Cr. Interest Income 2,500 Dr. Interest Expense 2,500; Cr. Accrued Interest 2,500 Dr. Interest Expense 625; Cr. Accrued Interest 625 Dr. Interest Receivable 625; Cr. Interest Income 625
ABC Company issued a promissory note with the following terms: Principal: P100,000 Date of note: December 16, 2020 Term: 60 days Rate: 15% What will be the adjusting entry on December 31, 2020? Select the correct response: Dr. Interest Receivable 2,500; Cr. Interest Income 2,500 Dr. Interest Expense 2,500; Cr. Accrued Interest 2,500 Dr. Interest Expense 625; Cr. Accrued Interest 625 Dr. Interest Receivable 625; Cr. Interest Income 625
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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![ABC Company issued a promissory note with the following terms:
Principal: P100,000
Date of note: December 16, 2020
Term: 60 days
Rate: 15%
What will be the adjusting entry on December 31, 2020?
Select the correct response:
Dr. Interest Receivable 2,500; Cr. Interest Income 2,500
Dr. Interest Expense 2,500; Cr. Accrued Interest 2,500
Dr. Interest Expense 625; Cr. Accrued Interest 625
Dr. Interest Receivable 625; Cr. Interest Income 625](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f6fdf8f-dcd8-40b8-8f5f-24ae71b5103d%2Fb163a309-b721-41b9-99da-da1bb4802cfe%2Fjloiawq_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ABC Company issued a promissory note with the following terms:
Principal: P100,000
Date of note: December 16, 2020
Term: 60 days
Rate: 15%
What will be the adjusting entry on December 31, 2020?
Select the correct response:
Dr. Interest Receivable 2,500; Cr. Interest Income 2,500
Dr. Interest Expense 2,500; Cr. Accrued Interest 2,500
Dr. Interest Expense 625; Cr. Accrued Interest 625
Dr. Interest Receivable 625; Cr. Interest Income 625
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