West County Bank agrees to lend Carla Vista Co. $352,000 on January 1. Carla Vista Co. signs a $352,000, 6%, 6-month note. What is the adjusting entry required if Carla Vista Co, prepares financial statements on March 30? a. Dr. Interest Payable, $5,280; Cr. Interest Expense, $5,280. b. Dr. Interest Expense, $10,560; Cr. Interest Payable, $10,560. c. Dr. Interest Expense, $10,560; Cr. Cash, $10,560. d. Dr. Interest Expense, $5,280; Cr. Interest Payable, $5,280.
West County Bank agrees to lend Carla Vista Co. $352,000 on January 1. Carla Vista Co. signs a $352,000, 6%, 6-month note. What is the adjusting entry required if Carla Vista Co, prepares financial statements on March 30? a. Dr. Interest Payable, $5,280; Cr. Interest Expense, $5,280. b. Dr. Interest Expense, $10,560; Cr. Interest Payable, $10,560. c. Dr. Interest Expense, $10,560; Cr. Cash, $10,560. d. Dr. Interest Expense, $5,280; Cr. Interest Payable, $5,280.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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