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Nacron Company borrowed $15,000 from the bank signing a 6%, 3-month note on Septem-ber 1. Principal and isiterest are payable to the bank on December
Nacron Company borrowed $15,000 from the bank signing a 6\%, 3-month note on Septem-ber 1. Principal and isiterest are payable to the bank on December 1 . If the company prepares monthly financial statements, the adjustment that the company should make for interest on September 30 , would be: increase Interest Expense, $75; increase Interest Payable, $75. increase Interest Expense, $900; increase Interest Payable, $900. decrease Note Payable, $900; decrease Cash, $900. increase Cash, \$75; increase Interest Payable, $75
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