Question
The company has a note and needs to adjust for the interest they owe. The note was issued on Oct 1 for $2,000 at 5%
The company has a note and needs to adjust for the interest they owe. The note was issued on Oct 1 for $2,000 at 5% interest for 6 months. The journal entry to record this adjustment at October 31 is (choose two accounts and one amount):
Dr. Cash
Cr. Cash
Dr. Interest Payable
Cr. Interest Payable
Dr. Interest Expense
Cr. Interest Expense
Dr. Note Payable
Cr. Note Payable
8.33
50
600
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Auditing And Other Assurance Services
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser
10th Canadian Edition
0131296159, 978-0131296152
