On December 1, 2010, a company loaned a new employee $20,000 to assist with her relocation expenses. The employee signed a 6-month note, with interest of 9%. The company prepares year-end financial statements at December 31. What is the required adjusting entry at December 31 as a result of this note transaction?
A) Option A
B) Option B
C) Option C
D) Option D

Question

On December 1, 2010, a company loaned a new employee $20,000 to assist with her relocation expenses. The employee signed a 6-month note, with interest of 9%. The company prepares year-end financial statements at December 31. What is the required adjusting entry at December 31 as a result of this note transaction? 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Quizplus · Accepted Answer

The Answer of On December 1, 2010, a company loaned a new employee $20,000 to assist with her relocation expenses. The employee signed a 6-month note, with interest of 9%. The company prepares year-end financial statements at December 31. What is the required adjusting entry at December 31 as a result of this note transaction? 
A) Option A 
B) Option B 
C) Option C 
D) Option D

On December 1, 2010, a Company Loaned a New Employee