Baden Industries borrows $20000 at 7% annual interest for six months on October 1 2022.Which is the appropriate adjustment to accrue interest if Baden employs a December 31 2022 fiscal year?
A) Increase Interest Expense $350 Increase Interest Payable $350
B) Increase Interest Expense $1400 Increase Interest Payable $1400
C) Increase Interest Expense $350 Decrease Notes Payable $350
D) Decrease Notes Payable $1400 Increase Interest Payable $1400
Correct Answer:
Verified
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