On August 1, 2013, Barnabas Company issued a $10,000 6%, 1-year note to Citizens Bank. Which of the following entries reflects the end of the year adjustment to record the expense incurred?

Question

Quizplus · Accepted Answer

The adjusting entry will increase interest expense which will decrease retained earnings and owners' equity and increase interest payable, a liability. The journal entry would be a debit to interest expense and a credit to interest payable.

On August 1, 2013, Barnabas Company Issued a $10,000 6