Pavement Company purchased a truck from Bee Thousand Corp. by issuing a 6-month, 8% note payable for $90,000 on November 1. On December 31, the accrued expense adjusting entry is a. No entry is required.
b.
$\begin{array}{llr}
\text { Interest Expense } &7,200\
\text {Interest Payable } &&7,200\
\end{array}$

c.
$\begin{array}{llr}
\text {Interest Expense } &3,600\
\text { Interest Payable } &&3,600\
\end{array}$

d.
$\begin{array}{llr}
\text { Interest Expense } &1,200\
\text {Interest Payable } &&1,200\
\end{array}$

Question

Pavement Company purchased a truck from Bee Thousand Corp. by issuing a 6-month, 8% note payable for $90,000 on November 1. On December 31, the accrued expense adjusting entry is a. No entry is required.
b. 
$\begin{array}{llr}
  \text { Interest Expense } &7,200\
 \text {Interest Payable  } &&7,200\
\end{array}$

c. 
$\begin{array}{llr}
  \text {Interest Expense  } &3,600\
 \text { Interest Payable } &&3,600\
\end{array}$

d. 
$\begin{array}{llr}
  \text { Interest Expense } &1,200\
 \text {Interest Payable  } &&1,200\
\end{array}$

Quizplus · Accepted Answer

The Answer of Pavement Company purchased a truck from Bee Thousand Corp. by issuing a 6-month, 8% note payable for $90,000 on November 1. On December 31, the accrued expense adjusting entry is a. No entry is required.
b. 
$\begin{array}{llr}
  \text { Interest Expense } &7,200\
 \text {Interest Payable  } &&7,200\
\end{array}$

c. 
$\begin{array}{llr}
  \text {Interest Expense  } &3,600\
 \text { Interest Payable } &&3,600\
\end{array}$

d. 
$\begin{array}{llr}
  \text { Interest Expense } &1,200\
 \text {Interest Payable  } &&1,200\
\end{array}$

Pavement Company Purchased a Truck from Bee Thousand Corp Interest Expense 7,200Interest Payable 7,200\begin{array}{llr} \text { Interest Expense } &7,200\\ \text {Interest Payable } &&7,200\\\end{array} Interest Expense Interest Payable ​7,200​7,200​

Pavement Company Purchased a Truck from Bee Thousand Corp $\begin{array}{llr} \text { Interest Expense } &7,200\\ \text {Interest Payable } &&7,200\\\end{array}$