Jasmine Restaurant signs a three-month note payable to help financing their expanding. The note is signed on October 1 in the amount of $80,000 with annual interest of 6%. What is the adjusting entry to be made on December 31 if no entries have been made previously for the interest?

Select one: a. Dr. Interest Expense 800 Cr. Interest Payable 800 b. Dr. Interest Expense 1,200 Cr. Interest Payable 1,200 c. Dr. Interest Expense 1,200 Cr. Cash d. Dr. Interest Expense 1,200 Cr. Notes Payable 1,200

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Adjusting entries are required: Select one: a. yearly. b. every time financial statements are prepared. c. quarterly. d. monthly.

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Before any year-end adjustments, Vatrina Company had the following accounts:

Prepaid Insurance $7,600 Insurance Expense $2,600

It was determined that $3,200 of the Prepaid Insurance had expired. What would be the insurance expense account after the adjustment? Select one: a. $2,600. b. $5,800. c. $4,400. d. $3,200.

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