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On November 1, Greenfield Corporation borrowed $55,000 from a bank and signed a 12%, 90-day note payable in the amount of $55,000. If you assume
On November 1, Greenfield Corporation borrowed $55,000 from a bank and signed a 12%, 90-day note payable in the amount of $55,000. If you assume 360 days in year, the November 30 adjustment will
a.increase discount on notes payable by $1,100 and increase interest payable by $1,100.
b.increase interest expense by $550 and decrease cash by $550.
c.increase interest expense by $550 and increase notes payable by $550.
d.increase interest expense by $550 and increase interest payable by $550.
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