Answer the following questions that are related to the following Interest Payable T-account:

Interest Payable
		February 1 balance	1,200
February transactions	1,580	February 28 adjustment	?
		February 28 balance	2,040

Required: a. What is the amount of the February 28 adjustment?

b. What account would most likely have been credited for the amount of the February transactions?

multiple choice 1

• Interest expense

• Cash

• Interest payable

c. What account would most likely have been debited for the amount of the February 28 adjustment?

multiple choice 2

• Interest expense

• Interest payable

• Cash

d. Why would this adjusting entry have been made?

multiple choice 3

• The entry would have been made to make the income statement and balance sheet more accurate.

• The entry would have been made to close the interest payable account.