Hamada Company borrows $20,000 on October 1 from Arab bank by signing a $20,000, 10%, six month note payable. The journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year is: a. Debit Interest expense 500 and credit Interest payable 500 O b. Debit Interest expense 2,000 and credit Interest payable 2,000 O c. Debit Interest expense 1,000 and credit Interest payable 1,000 O d. Debit Interest payable 500 and credit Interest expense 500
Hamada Company borrows $20,000 on October 1 from Arab bank by signing a $20,000, 10%, six month note payable. The journal entry to record accrued interest at December 31, assuming adjusting entries are made only at the end of the year is: a. Debit Interest expense 500 and credit Interest payable 500 O b. Debit Interest expense 2,000 and credit Interest payable 2,000 O c. Debit Interest expense 1,000 and credit Interest payable 1,000 O d. Debit Interest payable 500 and credit Interest expense 500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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11)
ACCOUNTING PRINCIPLES II course
Transcribed Image Text:Hamada Company borrows $20,000 on October 1 from Arab bank by signing a
$20,000, 10%, six month note payable. The journal entry to record accrued
interest at December 31, assuming adjusting entries are made only at the end of
the year is:
O a. Debit Interest expense 500 and credit Interest payable 500
O b. Debit Interest expense 2,000 and credit Interest payable 2,000
Oc.
Debit Interest expense 1,000 and credit Interest payable 1,000
O d. Debit Interest payable 500 and credit Interest expense 500
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