XYZ Company signs a three-month note payable to help finance increases in inventory for the Christmas...

  

Transcribed Image Text:

XYZ Company 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 $50,000 with annual interest of 6%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date: OA. interest expense 250 interest payable OB. interest expense 250 note payable O C. interest expense 500 250 O D. interest expense 500 interest payable 500 cash 250 500 XYZ Company 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 $50,000 with annual interest of 6%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date: OA. interest expense 250 interest payable OB. interest expense 250 note payable O C. interest expense 500 250 O D. interest expense 500 interest payable 500 cash 250 500

Answer rating: 100% (QA)

interest expense amount borrowed x interest rat... View the full answer