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On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $17,100. What is the adjusting entry for the accrued interest at December 31 on the note? a. Debit interest expense, $228; credit interest payable, $228. b. Debit interest expense, $304; credit interest payable, $304. c. Debit interest expense, $456; credit interest payable, $456. d. Debit interest expense, $0; credit interest payable, $0. e. Debit interest expense, $152; credit interest payable, $152.

On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $17,100. What is the adjusting entry for the accrued interest at December 31 on the note? a. Debit interest expense, $228; credit interest payable, $228. b. Debit interest expense, $304; credit interest payable, $304. c. Debit interest expense, $456; credit interest payable, $456. d. Debit interest expense, $0; credit interest payable, $0. e. Debit interest expense, $152; credit interest payable, $152.

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, Alan Company signed a 120-day, 8% note payable, with a face value of $17,100. What is the adjusting entry for the accrued interest at December 31 on the note? a. Debit interest expense, $228; credit interest payable, $228. b. Debit interest expense, $304; credit interest payable, $304. c. Debit interest expense, $456; credit interest payable, $456. d. Debit interest expense, $0; credit interest payable, $0. e. Debit interest expense, $152; credit interest payable, $152.
Transcribed Image Text:On November 1, Alan Company signed a 120-day, 8% note payable, with a face value of $17,100. What is the adjusting entry for the accrued interest at December 31 on the note? a. Debit interest expense, $228; credit interest payable, $228. b. Debit interest expense, $304; credit interest payable, $304. c. Debit interest expense, $456; credit interest payable, $456. d. Debit interest expense, $0; credit interest payable, $0. e. Debit interest expense, $152; credit interest payable, $152.
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