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Picaroon's Ltd, owes $100 interest each month on a bank loan, payable the first of every month. The company's year-end is December 31, 2021, and

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Picaroon's Ltd, owes $100 interest each month on a bank loan, payable the first of every month. The company's year-end is December 31, 2021, and adjusting entries are made annually. The company's bookkeeper docides not to record this interest on December 31 since it will be paid only a day later, on January 1. (a) Does it matter whether the interest is recorded on December 31 or January 1 ? (b) If a journal entry is not made on December 31,2021, identify which accounts, if any will be overstated or understated and by what amount for the 2021 fiscal year. If no accounts will be affected, say so, Picaroon's Ltd. owes $100 interest each month on a bank loan, payable the first of every month. The company's year-end is December 31,2021, and adjusting entries are made annually. The company's bookkeeper decides not to record this interest on December 31 since it will be paid only a day later, on January 1. (a) Does it matter whether the interest is recorded on December 31 or January 1 ? (b) If a journal entry is not made on December 31, 2021, identify which accounts, if any, will be overstated or understated and by what amount for the 2021 fiscal year, If no accounts will be affected, say so. Interest expense will b by $ and interest payable will be by $ eTextbook and Media Picaroon's Ltd. owes $100 interest each month on a bank loan, payable the first of every month. The company's year-end is December 31. 2021, and adjusting entries are made annually. The company's bookkeeper decides not to record this interest on December 31 since it will be paid only a day later, on January 1. (a) Does it matter whether the interest is recorded on December 31 or January 1 ? (b) If a journal entry is not made on December 31, 2021, identify which accounts, if any, will be overstated or understated and by what amount for the 2021 fiscal year. If no accounts will be affected, say so. Interest expense will be by $ and interest payable will bi by $ Picaroon's Ltd, owes $100 interest each month on a bank loan, payable the first of every month. The company's year-end is December 31, 2021, and adjusting entries are made annually. The company's bookkeeper decides not to record this interest on December 31 since it will be paid only a day later, on January 1. (a) Does it matter whether the interest is recorded on December 31 or January 1 ? (b) If a journal entry is not made on December 31,2021, identify which accounts, if any, will be overstated or understated and by what amount for the 2021 fiscal year. If no accounts will be affected, say so. II be by $ and interest payable will be by $

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