On September 1, 2022, Rowen Manufacturing issued a $90,000, 6-month, 9% note payable to purchase equipment. At December 31, 2022, the company records an adjusting entry to accrue interest incurred by not paid. The company pays the note with interest at the maturity date. What is the adjusting journal entry at December 31 to record the accrued interest on the note payable? Multiple Choice • Debit Interest Expense and credit Interest Payable for $2,700. Debit Interest Expense and credit Interest Payable for $3,600. Debit Interest Expense and credit Interest Payable for $8,100. • Debit Interest Payable and credit Cash for $3,600.

On September 1, 2022, Rowen Manufacturing issued a $90,000, 6-month, 9% note payable to purchase equipment. At December 31, 2022, the company records an adjusting entry to accrue interest incurred by not paid. The company pays the note with interest at the maturity date. What is the adjusting journal entry at December 31 to record the accrued interest on the note payable? Multiple Choice • Debit Interest Expense and credit Interest Payable for $2,700. Debit Interest Expense and credit Interest Payable for $3,600. Debit Interest Expense and credit Interest Payable for $8,100. • Debit Interest Payable and credit Cash for $3,600.

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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