On August 1, Year 1, Bellisa Company issued a $12,000 7%, 1-year note to Citizens Bank. Which of the following entries reflects the adjustment required as of December 31, Year 1?

A.

Interest payable840? 
Interest expense 840?

B.
Interest expense350? 
Interest payable 350?

C.
Interest expense350? 
Notes payable 350?

D.
Interest expense840? 
Interest payable 840?


Answer: B

Business

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