14. Frances Company has a note payable from bank for $80,000, made on June 1, 2020. The note matures in 5 years and bears annual interest of 9%. Frances is preparing financial statements for the month ending June 30, 2020. She should make an adjusting entry a. Debiting Interest payable for $600 and crediting Interest expense for $600. b. Debiting Interest expense for $600 and crediting Interest payable for $600 C. Debiting Interest expense for $7,200 and crediting Interest payable for $7,200. d. Crediting Interest receivable for $600 and debiting Interest revenue for $600. 15. In a periodic inventory system, the formula used in computing the cost of goods sold may be summarized as follows: a. Beginning inventory + net purchases - ending inventory b. Beginning inventory + purchases - net sales. c. Ending inventory + purchases - net sales. d. Balance in the Cost of Goods Sold account, less the balance in the Inventory Shrinkage account. 16. Land is purchased for $170,000. Additional costs include a $6,300 fee to a broker who arranged the sale of the land, a land survey fee of $1,200, $1,750 to construct a fence and a legal fee of $7,500 required to finalize the sale of the land. What is the cost of the land? a. $178,800 b. $170,000 C. $186,750 d. $185,000