On May 1, 2020, Zachary Corporation borrowed $2,500 on a two-year, 6% note payable. Interest is due and payable at the end of each six months. Zachary makes all interest payments on schedule. The correct December 31, 2020, adjusting entry would be a. Interest Expense 25 Interest Payable 100 b. Interest Payable Cash 100 c. Interest Expense 25 Cash 25 d. Interest Expense Interest Payable 100 100 25

On May 1, 2020, Zachary Corporation borrowed $2,500 on a two-year, 6% note payable. Interest is due and payable at the end of each six months. Zachary makes all interest payments on schedule. The correct December 31, 2020, adjusting entry would be a. Interest Expense 25 Interest Payable 100 b. Interest Payable Cash 100 c. Interest Expense 25 Cash 25 d. Interest Expense Interest Payable 100 100 25

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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