Note Payable of $6,000 represents a loan that was taken on June 1, 2019 at a yearly interest rate of 10%. The adjusting entry required on Aug 318, 2019 will be: a. Cash $200, credit Note Payable $200 b. Debit Interest Payable $100, credit Interest Expense $100 c. Debit interest expense $150, credit Interest Payable $150 d. Debit cash $100, credit Interest Payable $100

Note Payable of $6,000 represents a loan that was taken on June 1, 2019 at a yearly interest rate of 10%. The adjusting entry required on Aug 318, 2019 will be: a. Cash $200, credit Note Payable $200 b. Debit Interest Payable $100, credit Interest Expense $100 c. Debit interest expense $150, credit Interest Payable $150 d. Debit cash $100, credit Interest Payable $100

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

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 2P: Notes Payable and Effective Interest On November 1,2019, Edwin Inc. borrowed cash and signed a...

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