Harding Company borrowed $10,000 on October 1, 2013. Harding issued a one year 6% discount note payable. The adjusting entry necessary to record accrued interest on December 31, 2013 would include a:
A)debit to Discount on Notes Payable of $150.
B)credit to Interest Payable for $150.
C)debit to Interest Expense for $150.
D)none of these.

Question

Quizplus · Accepted Answer

$10,000 x 6% = $600 discount; $600/12 months x 3 months = $150 (Oct. 1 - De

Harding Company Borrowed $10,000 on October 1, 2013