On November 1, Alan Company signed a 120-day, 11% note payable, with a face value of $23,400. What is the adjusting entry for the accrued interest at December 31 on the note?
Note: Use 360 days a year.

Question

On November 1, Alan Company signed a 120-day, 11% note payable, with a face value of $23,400. What is the adjusting entry for the accrued interest at December 31 on the note?

Note: Use 360 days a year.

Answer

Debit Interest Expense, $429; credit Interest Payable, $429.

Answer

Debit Interest Expense, $286; credit Interest Payable, $286.

Answer

No adjusting entry is required.

Answer

Debit Interest Payable, $858; credit Interest Expense, $858.

Answer

Debit Interest Payable, $572; credit Interest Expense, $572.

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On November 1, Alan Company signed a 120-day, 11% note payable, with a face valu...

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