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On October 1,a Company Borrowed $60,000 from Great North Bank

Question 109

Multiple Choice

On October 1,a company borrowed $60,000 from Great North Bank on a one-year,7% note.The company's fiscal year ends on December 31.What is the year-end adjusting entry required?


A) increase interest expense by $4,200
B) increase notes payable by $1,050
C) increase interest payable by $1,050
D) increase prepaid interest by $3,150

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