Multiple Choice
Johnson issues a $5,000,7%,100-day promissory note to Adam on November 1.What is the adjusting entry made by Johnson on December 31 to recognize the interest (using a 360-day year) ?
A) Debit Interest Expense;credit Interest Payable for $58.33
B) Debit Interest Expense;credit Interest Payable for $97.22
C) Debit Interest Receivable;credit Interest Income for $58.33
D) Debit Interest Receivable;credit Interest Income for $97.22
Correct Answer:
Verified
Correct Answer:
Verified
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