1. Moss County Bank agrees to lend the Sadowski Company $500,000 on January 1, Sadowski Brick company signs a $ 500,000, 6% 9 month note. What is the adjusting entry required if Sadowski Brick Company prepares financial statements on June 30

a. Interest Payable 15,000

Cash 15,000

b. Interest Expense 15,000

Interest Payable 15,000

c. Interest Payable 15,000

Interest Expense 15,000

d. Interest Expense 15,000

Cash 15,000

2. Which of the following most likely would be classified as a current liability

a. Dividends payable

b. Bonds payable in 5 years

c. Mortgage payable as a single payment in 10 years

d. Three – year notes payable

Answer rating: 100% (QA)

1 Option is b Account title... View the full answer