Solved

Uncle Tupelo's Gifts Signs a Three-Month Note Payable to Help

Question 176

Short Answer

Uncle Tupelo's Gifts signs a three-month note payable to help finance increases in inventory for the Christmas shopping season. The note is signed on November 1 in the amount of $75,000 with annual interest of 12%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date, if no entries have been made previously for the interest? Uncle Tupelo's Gifts signs a three-month note payable to help finance increases in inventory for the Christmas shopping season. The note is signed on November 1 in the amount of $75,000 with annual interest of 12%. What is the adjusting entry to be made on December 31 for the interest expense accrued to that date, if no entries have been made previously for the interest?

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q9: Accounting time periods that are one year

Q77: Failure to prepare an adjusting entry at

Q82: If a resource has been consumed but

Q120: Which of the following statements related to

Q177: A flower shop makes a large sale

Q178: <sup> </sup>182. Buffalo Tom Cruises purchased a

Q179: At December 31, 2018, before any year-end

Q181: Scotsman Company prepares monthly financial statements. Below

Q203: Which of the following is not an

Q220: Cash-basis accounting is in accordance with<br>A) GAAP