On December 31, 2018, interest of $1,500 has accrued on a bank note. This interest payment is due on January 20, 2019. If no adjusting entry is made on December 31, 2018, indicate the effect on assets, liabilities, equity, and net income.
$$\begin{array} { | l | l | }
\hline & \text { Understated, Overstated, No Effect } \
\hline \text { Assets } & \
\hline \text { Liabilities } & \
\hline \text { Equity } & \
\hline \text { Net Income } & \
\hline
\end{array}$$

Question

On December 31, 2018, interest of $1,500 has accrued on a bank note. This interest payment is due on January 20, 2019. If no adjusting entry is made on December 31, 2018, indicate the effect on assets, liabilities, equity, and net income.
 $$\begin{array} { | l | l | } 
\hline & \text { Understated, Overstated, No Effect } \
\hline \text { Assets } & \
\hline \text { Liabilities } & \
\hline \text { Equity } & \
\hline \text { Net Income } & \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of On December 31, 2018, interest of $1,500 has accrued on a bank note. This interest payment is due on January 20, 2019. If no adjusting entry is made on December 31, 2018, indicate the effect on assets, liabilities, equity, and net income.
 $$\begin{array} { | l | l | } 
\hline & \text { Understated, Overstated, No Effect } \
\hline \text { Assets } & \
\hline \text { Liabilities } & \
\hline \text { Equity } & \
\hline \text { Net Income } & \
\hline
\end{array}$$

On December 31, 2018, Interest of $1,500 Has Accrued on a Bank