Transaction 3A Dec. 1, Y3: Jensen Corporation borrowed from its bank $10,000 on a 90-day note at 12%. The note and interest were to be paid upon maturity in Y4. Give all journal entries to record this transaction on Dec. 1, Y3.

Q26. Indicate the account title to be debited by $10,000.

A. Acct Receivable B. Cash C. Interest Expense

D. Accounts Payable E. Note Payable

Q27. Indicate the account title to be credited by $10,000.

A. Acct Receivable B. Cash C. Interest Expense

D. Accounts Payable E. Note Payable

Transaction 3B Dec. 31, Y3: Prepare the adjusting entry to record accrued interest on the note.

Q28. How much interest expense would be reported in Y3?

A. $0 B. $100 C. $300 D. $1,200

Q29. Indicate the account title to be debited.

A. Acct Payable B. Cash C. Interest Expense D. Interest Payable E. Treasury Stock

Q30. Indicate the account title to be credited.

A. Acct Payable B. Cash C. Interest Expense D. Interest Payable E. Treasury Stock