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Fair Company issued a $10,000 note to the Capital Bank on August 1, 2019. The note carried a one-year term and a 12% rate of
- Fair Company issued a $10,000 note to the Capital Bank on August 1, 2019. The note carried a one-year term and a 12% rate of interest. The adjusting entry on Fair's books to record accrued interest expense on December 31, 2019 will
- a. Decrease assets and increase retained earnings by $500.
- b. Increase liabilities and decrease equity by $400.
- c. Increase liabilities and decrease equity by $500.
- d. Decrease equity and increase liabilities by $1,200.
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Financial Accounting
Authors: Robert Kemp, Jeffrey Waybright
4th edition
978-0134125053, 9780134114781, 134125053, 134114787, 978-0134436111
