On December 1, 2021, ABC Company, borrows $20,000 cash to expand operations. The loan is made by First Bank under a short-term line of credit arrangement. The company signs a six-month, 15% promissory note. Interest is payable at maturity. ABCs year-end is December 31. Required: ABC Company should record which of the following adjusting entries at December 31, 2021? multiple choice 1 Dr. Interest expense and Cr. Interest payable, $250 Dr. Interest expense and Cr. Interest payable, $500 Dr. Interest expense and Cr. Cash, $250 Dr. Interest expense and Cr. Cash, $500 What amount of cash will be needed to pay back the note payable plus any accrued interest on June 1, 2022? multiple choice 2 $21,500 $23,000 $22,500 $21,250 In connection with this note, ABC Company should report interest expense in 2022 for the amount of: multiple choice 3 $1,250 $3,000 $2,500 $1,500.

Required:

ABC Company should record which of the following adjusting entries at December 31, 2021?

multiple choice 1

• Dr. Interest expense and Cr. Interest payable, $250

• Dr. Interest expense and Cr. Interest payable, $500

• Dr. Interest expense and Cr. Cash, $250

• Dr. Interest expense and Cr. Cash, $500

What amount of cash will be needed to pay back the note payable plus any accrued interest on June 1, 2022?

multiple choice 2

• $21,500

• $23,000

• $22,500

• $21,250

In connection with this note, ABC Company should report interest expense in 2022 for the amount of:

multiple choice 3

• $1,250

• $3,000

• $2,500

• $1,500