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On May 1,a Company Borrowed $30,000 from the Great Western

Question 140

Multiple Choice

On May 1,a company borrowed $30,000 from the Great Western Bank on a one-year,6% note.The company keeps its records on a calendar-year basis.What entry is needed on December 31st?


A) Increase interest expense by $600.
B) Increase interest expense by $1,800.
C) Increase interest payable by $900.
D) Increase interest payable by $1,200.

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