Question
1. Moss County Bank agrees to lend the Sadowski Brick Company $500,000 on January I Sadowski Brick Company signs a $500,000, 6%. 9-month note. What
1. Moss County Bank agrees to lend the Sadowski Brick Company $500,000 on January I Sadowski Brick Company signs a $500,000, 6%. 9-month note. What is the adjusting entry required if Sadowski Brick Company prepares financial statements on June 30?
(A) Interest payable Cash. . . . . . . . 15,000
Cash………….....................…………………………..15.000
(B) Interest Expense. . . …………….15,000
Interest Payable…. . .…........……………………..15,000
(C) Interest Payable . . . …………….15,000
Interest Expense. .………….....….....……………..15,000
(D) Interest Expense. . . …………….15,000
Cash. . . . . . . . .. .…………………..............………..15,000
2. Which of the following most likely would be classified as a current liability"
(A) Dividends payable
(B) Bonds payable in 5 years
(C) Mortgage payable as a single payment in 10 years
(D) Three-year notes payable
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