Question: On October 1st 2022 , ABC Co. signed a 5-month note payable with principal of $1,000 and an annual interest rate of 12%. In the

On October 1st 2022, ABC Co. signed a 5-month note payable with principal of $1,000 and an annual interest rate of 12%. In the adjusting journal entry to record interest expense on 12/31/2022 (first year), which account will be credited related to this transaction?

Interest expense

Interest payable

Note receivable

Cash

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

a. Watson Elementary School contains 30 classrooms numbered 1 through 30. Each classroom can contain any number of students up to 35. Each student takes an achievement test at the end of the school...

On October 1st 2022, ABC Co. signed a 5-month note payable with principal of $10,000 and an annual interest rate of 12%. What is the interest expense that the company will report on the 2023 (second...

journal entry question 1.) On July 1, 2021, purchased $20,000 of IBM Corporation bonds at face value. The bonds pay interest twice a year on January 1 and July 1. The annual interest rate is 9%....

The Eagles Inc. was started on September 1, 2022, and was formed by two people--John and Mike. You are asked to go through the entire accounting cycle and prepare the books for the Month of...

The Information necessary for preparing the December 31, 2021 year end adjusting entries for Vito's Pizza Parlor appears below Vito's fiscal year-end is December 31 a On July 1, 2021, purchased...

Oshawa is a retailer that sells a variety of imported glass products. As at September 30, 2014, Oshawa Ltd., trial balance shows the following. Each account has a "normal" debit or credit balance, as...

These pictures are part 5 instructions: BUAD 111 project Your business is growing and operations during 2021 and into 2022 have been quite successful. Your business has purchased more equipment. It...

It is now November 2022 and your business is growing quickly and the results have been quite successful. Your business has purchased more equipment. It has also added another revenue stream: selling...

Part 6 This section of the project is a continuation from Part 5. Use the information from the previous section and follow the instructions below using the Excel work you have already completed in...

The following reaction is the main mechanism for the removal of NO 2 from the atmosphere: NO 2 + OH + M HNO 3 + M The rate constant for this reaction is 4.8010 -31 (T/298 K) -1.6 cm 6 molecule -2 s...

Suppose you are given the following input. Show the graph representing the input and execute your algorithm. Can you find a valid execution sequence? Job Prerequisites al AND {} a2 OR {a1} a3 OR...

Variable cost per unit is constant throughout production range is true or

Which of the following is not one of the reasons that a company's strategy evolves over time? A ) The need on the part of company managers to make regular strategy adjustments so as to keep rivals...

What literature and information sources are available to you (physically and electronically) from: your study centre; your place of work; any professional institutions of which you or your...

How familiar are you with HR related internet gateways and other search engines?

Which academic journals are you already familiar with and which do you find the most challenging to analyse?