On November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $20,700. What is the adjusting entry for the accrued interest at December 31 on the note? (Use 360 days a year.) Multiple Choice No adjusting entry srequired. Debit Interest Expense, $460; credit Interest Payable, $460. Debit Interest Payable, $690; credit Interest Expense, $690. Debit Interest Payable, $230; credit Interest Expense, $230. Debit Interest Expense, $345; credit Interest Payable, $345.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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On November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $20,700. What is the adjusting entry for the accrued interest at December 31 on the note? (Use 360 days a year.)
Multiple Choice
No adjusting entry is required.
Debit Interest Expense, $460; credit Interest Payable, $460.
Debit Interest Payable, $690; credit Interest Expense, $690.
Debit Interest Payable, $230; credit Interest Expense, $230.
Debit Interest Expense, $345; credit Interest Payable, $345.
Transcribed Image Text:On November 1, Alan Company signed a 120-day, 10% note payable, with a face value of $20,700. What is the adjusting entry for the accrued interest at December 31 on the note? (Use 360 days a year.) Multiple Choice No adjusting entry is required. Debit Interest Expense, $460; credit Interest Payable, $460. Debit Interest Payable, $690; credit Interest Expense, $690. Debit Interest Payable, $230; credit Interest Expense, $230. Debit Interest Expense, $345; credit Interest Payable, $345.
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