Question

the adjusting entry to record accrued interest on a note payable requires a

the adjusting entry to record accrued interest on a note payable requires a
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Adjusting entries
Date Account Debit Credit
Interest expense
Interest Payable                   -  
(To record accrued interest on a note payable)
We need below items to calculate interest expense
Face value of note
Interest rate
Term of note (in days, months or year)
Formula
Interest expense = Face Value * Interest Rate * Term
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Interest of $75 has accrued during the month on a note payable. The company's adjusting entry...
Interest of $75 has accrued during the month on a note payable. The company's adjusting entry to record this at the end of the month would be: debit Interest Receivable and credit Interest Revenue for $75 debit Interest Revenue and credit Interest Receivable for $75 debit Interest Payable and credit Interest Expense for $75 debit Interest Expense and credit Interest Payable for $75 Our company agrees to hire a landscaping company to provide $500 in lawn services. No payment is...
Question 3. Part A. An adjusting entry made to record accrued interest on a note receivable...
Question 3. Part A. An adjusting entry made to record accrued interest on a note receivable due next year consists of a: A. debit to Interest Expense and a credit to Cash. B. debit to Interest Receivable and a credit to Interest Revenue. C. debit to Interest Expense and a credit to Interest Payable. D. debit to Interest Expense and a credit to Notes Payable. Part B. Which of the following is an asset? A. Prepaid Rent B. Service Revenue...
30. If the adjusting entry to record the accrued interest revenue is omitted: Select one: a....
30. If the adjusting entry to record the accrued interest revenue is omitted: Select one: a. net income would be overstated and liabilities would be overstated. b. net income would be understated and assets would be understated. c. net income would not be affected but assets would be overstated. d. no impact on both net income and assets.
A company makes an accrued revenue adjusting entry for $900 and an accrued expense adjusting entry...
A company makes an accrued revenue adjusting entry for $900 and an accrued expense adjusting entry for $700. How much was net income understated prior to these entries?
The adjusting entry to accrued wages credits Select one: a) Wages payable b) Wage expense c)...
The adjusting entry to accrued wages credits Select one: a) Wages payable b) Wage expense c) None of the above
On September 1, 2019, Rowen Manufacturing issued a $90,000, 6-month, 9% note payable to purchase equipment....
On September 1, 2019, Rowen Manufacturing issued a $90,000, 6-month, 9% note payable to purchase equipment. At December 31, 2019, the company records an adjusting entry to accrue interest incurred by not paid. The company pays the note with interest at the maturity date. What is the adjusting journal entry at December 31 to record the accrued interest on the note payable?
The journal entry to record 31 days of accrued interest at the end of the month...
The journal entry to record 31 days of accrued interest at the end of the month on a $10,000 note payable at 9% interest would include (use a 365-day year to calculate interest): a. debit Interest Expense for $76.44 b. debit Interest Payable for $900.00 c. debit Interest Expense for $900.00 d. debit Interest Payable for $76.44 When a company issues stock that has a par or stated value, then the par or stated value of the shares is the...
interest accrued on the note payable to rent it amounted to $750 at dec 31
interest accrued on the note payable to rent it amounted to $750 at dec 31
At December 31, 2021, Giselle Company made an accrued expense adjusting entry of $1,700 for salaries....
At December 31, 2021, Giselle Company made an accrued expense adjusting entry of $1,700 for salaries. On January 4, 2022, it paid salaries of $3,000: $1,700 for December salaries and $1,300 for January salaries. (a) Prepare the December 31 adjusting entry. (b) Prepare the December 31 closing entry for salaries. (c) Prepare the January 1 reversing entry and the January 4 journal entry to record the payment of salaries. (d) Indicate the balances in Salaries Payable and Salaries Expense after...
Which of the following statements is correct regarding the adjustment to record interest accrued on a...
Which of the following statements is correct regarding the adjustment to record interest accrued on a note payable? Multiple Choice Interest on the note payable is classified as an expense since it is a cost of borrowing. Interest on a note payable should be credited to Notes Payable because it increases the amount of principal to be repaid at the maturity of the note. Interest on the note payable is classified as revenue since it is an amount that can...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT