Grayson Bank agrees to lend the Trust Company $100,000 on January 1. Trust Company signs a $100,000, 9%, 9-month note. What is the adjusting entry required if Trust Company prepares financial statements on June 30?
A) Interest Expense 9,000Interest Payable 9,000
B) Interest Expense 4,500Interest Payable 4,500
C) Interest Expense 6,750Interest Payable 6,750
D) Interest Payable 4,500Interest Expense 4,500
B
You might also like to view...
Which of the following is an account in stockholders' equity?
a. Dividends Payable b. Loss on Sale of Equipment c. Retained Earnings d. Net income
What is the auditor trying to accomplish by varying the timing of audit procedures from the prior year?
a. Introduce unpredictability. b. Confuse the client. c. Gather information during different times of the year. d. Finish the audit sooner.
Tony has an unendorsed Personal Auto Policy which provides medical payments coverage. Under which of the following circumstances would the injured person be eligible for benefits under Tony's policy?
I. A friend in the car is injured while Tony is driving a covered auto. II. A passenger on a motorcycle driven by Tony is injured when Tony hit another vehicle. A) I only B) II only C) both I and II D) neither I nor II
In the ISO Commercial Crime Coverage form, safe burglary is defined as the
A) unlawful taking of property to the deprivation of the insured. B) unlawful taking of property from the care and custody of a person by someone who has caused or threatens to cause bodily harm or who has committed an unlawful act witnessed by that person. C) unlawful taking of money or securities through the alteration of a negotiable instrument. D) unlawful taking of property from within a locked safe or vault by someone who enters the safe or vault as evidenced by marks of forcible entry upon the exterior.