Find adjusting entry that company should make for interest


Raxon company borrowed $40.000 from the bank signing a %6,3-months note on sepyember 1.principle and interest are payable to the bank on december 1. if the company praperes monthly financial statements, the adjusting entry that the company should make for interest on september 30, would be

a) debit interst expense $2,400 credit interest payable $2,400

b) debit interst expense $200 credit interst payable $200

c) debit cash $600 credit interest payable $600

Solution Preview :

Prepared by a verified Expert
Finance Basics: Find adjusting entry that company should make for interest
Reference No:- TGS0552174

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)