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On November 1, 2025, Ashton, Inc. purchased merchandise inventory for $30,000 by signing a note payable. The note is for 6 months and bears interest at a rate of 2%. The journal entry to record the accrued interest expense on December 31, 2025 would be: (Do not round intermediate calculations, and round the final answer to the nearest dollar.) O Interest Payable 100 OOO Interest Expense O Interest Expense Interest Payable O Interest Payable Interest Expense O Interest Expense Interest Payable 300 300 100 100 300 300 100

On November 1, 2025, Ashton, Inc. purchased merchandise inventory for $30,000 by signing a note payable. The note is for 6 months and bears interest at a rate of 2%. The journal entry to record the accrued interest expense on December 31, 2025 would be: (Do not round intermediate calculations, and round the final answer to the nearest dollar.) O Interest Payable 100 OOO Interest Expense O Interest Expense Interest Payable O Interest Payable Interest Expense O Interest Expense Interest Payable 300 300 100 100 300 300 100

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 November 1, 2025, Ashton, Inc. purchased merchandise inventory for $30,000 by signing a note payable. The note is for 6 months and bears interest at a rate of 2%. The journal entry to record the accrued interest expense on December 31, 2025 would be: (Do not round intermediate calculations, and round the final answer to the nearest dollar.) 1. Interest Payable: 100 Interest Expense: 100 2. Interest Expense: 300 Interest Payable: 300 3. Interest Payable: 300 Interest Expense: 300 4. Interest Expense: 100 Interest Payable: 100
Transcribed Image Text:On November 1, 2025, Ashton, Inc. purchased merchandise inventory for $30,000 by signing a note payable. The note is for 6 months and bears interest at a rate of 2%. The journal entry to record the accrued interest expense on December 31, 2025 would be: (Do not round intermediate calculations, and round the final answer to the nearest dollar.) 1. Interest Payable: 100 Interest Expense: 100 2. Interest Expense: 300 Interest Payable: 300 3. Interest Payable: 300 Interest Expense: 300 4. Interest Expense: 100 Interest Payable: 100
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