Mena's Pizza Shoppe borrowed $7,000 at 9% interest on May 1, 2021, with principaljand interest due on October 31, 2022. The company'sIscal year ends June 30, 2021. What adjusting entry is necessary on June 30, 20212Multiple ChoicePrepaid interestInterest payableInterest expenseInterest payableNo entry. Prepaid interestInterest payable105105Interest expense210Interest payable210No entry.105Interest expense105Interest payable

Total interest due on borrowed amount should be considered as interest expense and as the amount is…

Moma's Pizza Shoppe borrowed $7,000 at 9% interest.on May 1, 2021,with principaland interest due on Octaber 31, 2022.The compa iscal year ends June 30, 2021. What adjusting entry is necessary on June 30, 2021 Multiple Choice Prepaid interest Interest payable Interest expense Interest payable No entry

Moma's Pizza Shoppe borrowed $7,000 at 9% interest.on May 1, 2021,with principaland interest due on Octaber 31, 2022.The compa iscal year ends June 30, 2021. What adjusting entry is necessary on June 30, 2021 Multiple Choice Prepaid interest Interest payable Interest expense Interest payable No entry

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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View Policies Current Attempt in Progress Windsor Industries borrows $18800 at 8% annual interest for six months on October 1, 2022. Which is the appropriate entry to accrue interest if Windsor employs a December 31, 2022, fıscal year? O Dr Interest Expense $1504 Cr Interest Payable $1504 O Dr Interest Expense $376 Cr Interest Payable $376 O Dr Interest Expense $376 Cr Notes Payable $376 O Dr Notes Payable $1504 Cr Interest Payable $1504 Save for Later Attempts: 0 of 1 used Submit Answer