Holiday Gifts signs a three-month note payable to help finance increases in inventory for the Christmas shopping season. The note is signed on November 1 in the amount of $75000 with annual interest of 6%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date, if no entries have been made previously for the interest?

Interest Expense	450
Note Payable			450

Interest Expense	450
Interest Payable			450

Interest Expense	300
Interest Payable			300

Interest Expense	300
Cash			300

Answer rating: 100% (QA)

Amount 75000 Annual interest 6 06 Date signed November ... View the full answer