On October 1, 2019, Muscat Company borrowed OMR 8,000 cash by signing a note payable due in one year at 8% interest. Interest is due when the principal is paid. If financial statements are to be prepared on December 31, the company should make the following adjusting entry: Select one: O a Interest Expense 160 Interest Payable 160 O b. Interest Expense. 8,000 Interest Payable . 8,000 O cinterest Expense. 640 Interest Payable 640 O d. None of the answers are correct O e. Cash 8,000 Notes Payable 8,000

On October 1, 2019, Muscat Company borrowed OMR 8,000 cash by signing a note payable due in one year at 8% interest. Interest is due when the principal is paid. If financial statements are to be prepared on December 31, the company should make the following adjusting entry: Select one: O a Interest Expense 160 Interest Payable 160 O b. Interest Expense. 8,000 Interest Payable . 8,000 O cinterest Expense. 640 Interest Payable 640 O d. None of the answers are correct O e. Cash 8,000 Notes Payable 8,000

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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