Oliver Industries borrowed

$100,000

from the bank signing a

6%

, one year note on June 1,2022 . Principal and interest are payable to the bank on June 1,2023 . If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on June 30, 2022 would be:\ debit Interest Expense, $1,500; credit Interest Payable,

$1,500

.\ debit Interest Expegse, $500; credit Interest Payable,

$500

.\ debit Interest Payable,

$6,000

; credit Cash,

$6,000

.\ No adjusting entry is needed until the load is paid off

Oliver Industries borrowed $100,000 from the bank signing a 6%, one year note on June 1,2022 . Principal and interest are payable to the bank on June 1,2023 . If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on June 30, 2022 would be: debit Interest Expense, \$1,500; credit Interest Payable, \$1,500. debit Interest Expense, \$500; credit Interest Payable, $500. debit Interest Payable, $6,000; credit Cash, $6,000. No adjusting entry is needed until the load is paid off