Question
QUESTION 37 On September 1, McAdoo Corporation loaned money to McHale Company. McAdoo accepted a $400,000, 6-month, 6% note. Principal and interest are due at
QUESTION 37
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On September 1, McAdoo Corporation loaned money to McHale Company. McAdoo accepted a $400,000, 6-month, 6% note. Principal and interest are due at maturity. McAdoos year-end is December 31.
On December 31, McAdoo made an adjusting entry to record accrued interest on the note. The correct entry will include a:
A. Credit to Interest Revenue for $24,000.
B. Credit to Interest Revenue for $8,000.
C. Credit to Interest Receivable for $12,000.
D. Debit to Interest Expense for $8,000.
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Environmental Audits
Authors: Cliff VanGuilder
1st Edition
1938549600, 978-1938549601
