Hudson Bay Company borrowed $200,000 on July 1, 2001, signing a one year, 10% note payable...
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Hudson Bay Company borrowed $200,000 on July 1, 2001, signing a one year, 10% note payable to Canada Bank. The adjusting entry required on December 1, 2001, includes a a. debit to Interest Expense of $15,000. b. debit to Cash of $185,000. c. credit to Interest Revenue of $15,000. d. debit to Interest Payable of $20,000. Hudson Bay Company borrowed $200,000 on July 1, 2001, signing a one year, 10% note payable to Canada Bank. The adjusting entry required on December 1, 2001, includes a a. debit to Interest Expense of $15,000. b. debit to Cash of $185,000. c. credit to Interest Revenue of $15,000. d. debit to Interest Payable of $20,000.
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The Journal entry for the given transaction is as foll... View the full answer
Related Book For
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
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