Riche Bank agrees to lend $ 38,000 on August 1, 2019, if Brown Co. signs at $ 38,000, 8.75%,

six-month note maturing on February 1.

Prepare the adjusting entry on December 31, assuming monthly adjusting entries have not been made.

Riche Bank agreed on August 1, 2019, to lend $ 38,000 to Brown Co. if it signs a note with a six-month expiration date, at 8.75% interest, with a February 1 expiration date.

Select the options that are required for the input.

O Interest Expense-debit 1,385.42 O Interest Expense-credit 1,385.42 Interest payable-debit 1,385.42 Interest payable-credit 1,385.42 Interest Expense-debit 1,108.33 Interest Expense-debit 1,662.50 Interest payable-credit 1,108.33 O Interest payable-credit 1,662.50 Interest Expense-credit 1,108.33 Interest Expense-credit 1,662.50 Interest payable-debit 1,108.33 Interest payable-debit 1,662.50