A review of the ledger of Blue Corporation on December 31, 2022 reveals a balance before adjustment

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A review of the ledger of Blue Corporation on December 31, 2022 reveals a balance before adjustment in notes payable account of $600,000. This balance consists of a 3-month, 8% interest-bearing note payable dated December 1, 2022 .

What adjusting entry should Blue make on December 31, 2022?

Group of answer choices

Debit Interest Expense and credit Interest Payable, $12,000

Debit Interest Expense and credit Cash, $12,000

Debit Interest Expense and credit Interest Payable, $4,000

Debit Interest Expense and credit Cash, $4,000

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0176509736

10th Canadian Edition, Volume 1

Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,

See More Books

Posted Date: May 17, 2022 07:41 AM

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A review of the ledger of Blue Corporation on December 31, 2022 reveals a balance before adjustment

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Expert Answer:

Interest for the month of december 600... View the full answer

Intermediate Accounting

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