A company has a loan that accrues interest at a rate of $20 a day.The company pays the interest once a quarter.Which of these would be an accurate adjustment for a month in which no payments are made?
A) Debit Interest Payable and credit Interest Expense.
B) Debit Loans Payable and credit Cash.
C) Debit Interest Expense and credit Interest Payable.
D) Debit Cash and credit Loans Payable.
Correct Answer:
Verified
Q45: During the month,a company uses up $4,000
Q46: The company uses up $5,000 of the
Q47: On December 31,a decision is made to
Q48: One major difference between deferral and accrual
Q49: Declared dividends:
A)are an expense of doing business.
B)are
Q51: A company makes a deferral adjustment that
Q52: At the end of the month,the adjusting
Q53: Accumulated Depreciation:
A)is an expense account.
B)is a liability
Q54: Purrfect Pets had income before income tax
Q55: Which of the following is not the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents