Question
Fallon Company issued a $20,000 note to the Capital Bank on August 1, 2013. The note carried a one-year term and a 12% rate of
Fallon Company issued a $20,000 note to the Capital Bank on August 1, 2013. The note carried a one-year term and a 12% rate of interest. The adjusting entry on Fallon's books to record accrued interest expense on December 31, 2013 will
| A. | Decrease assets and decrease retained earnings by $1,000. |
| B. | Increase liabilities and decrease equity by $800. |
| C. | Increase liabilities and decrease equity by $1,000. |
| D. | Decrease equity and increase liabilities by $2,400. |
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DCAA Contract Audit Manual Volume 1
Authors: Defense Contract Audit Agency
1st Edition
B08HTL19V5, 979-8684992995
