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On December 1, 2024, Old World Deli signed a $300,000, 5%, six-month note payable with the amount borrowed plus accrued interest due six months later on June 1, 2025. Old World Deli should record which of the following adjusting entries at December 31, 2024? Multiple Choice ○ Debit Interest Expense and credit Cash, $1,250 ○ Debit Interest Expense and credit Interest Payable, $1,250 ○ Debit Interest Expense and credit Cash, $7,500 ○ Debit Interest Expense and credit Interest Payable, $7,500

On December 1, 2024, Old World Deli signed a $300,000, 5%, six-month note payable with the amount borrowed plus accrued interest due six months later on June 1, 2025. Old World Deli should record which of the following adjusting entries at December 31, 2024? Multiple Choice ○ Debit Interest Expense and credit Cash, $1,250 ○ Debit Interest Expense and credit Interest Payable, $1,250 ○ Debit Interest Expense and credit Cash, $7,500 ○ Debit Interest Expense and credit Interest Payable, $7,500

FINANCIAL ACCOUNTING
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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On December 1, 2024, Old World Deli signed a $300,000, 5%, six-month note payable with the amount borrowed plus accrued interest due six months later on June 1, 2025. Old World Deli should record which of the following adjusting entries at December 31, 2024? Multiple Choice Debit Interest Expense and credit Cash, $1,250 о Debit Interest Expense and credit Interest Payable, $1,250 Debit Interest Expense and credit Cash, $7,500 Debit Interest Expense and credit Interest Payable, $7,500
Transcribed Image Text:On December 1, 2024, Old World Deli signed a $300,000, 5%, six-month note payable with the amount borrowed plus accrued interest due six months later on June 1, 2025. Old World Deli should record which of the following adjusting entries at December 31, 2024? Multiple Choice Debit Interest Expense and credit Cash, $1,250 о Debit Interest Expense and credit Interest Payable, $1,250 Debit Interest Expense and credit Cash, $7,500 Debit Interest Expense and credit Interest Payable, $7,500
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