Question
On October 1, Year 1, Hartford Company issued a $13,000 face value discount note. The note had a 6% discount rate and a one-year term
On October 1, Year 1, Hartford Company issued a $13,000 face value discount note. The note had a 6% discount rate and a one-year term to maturity. Which of the following would be included in the adjusting entry, dated December 31, Year 1, to recognize interest accrued since the issuance date?
Group of answer choices
none of these answer choices are correct.
A credit to Interest Payable for $195
A debit to Discount on Notes Payable of $195
A debit to Interest Expense for $195
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
10th Edition
1119491630, 978-1119491637, 978-0470534793
