On November 1,Alan Company Signed a 120-Day,8% Note Payable,with a Face

question 53

Multiple Choice

On November 1,Alan Company signed a 120-day,8% note payable,with a face value of $9,000.What is the adjusting entry for the accrued interest at December 31 on the note?

• A)Debit interest expense,$0;credit interest payable,$0.
• B)Debit interest payable,$120;credit interest expense,$120.
• C)Debit interest expense,$120;credit interest payable,$120.
• D)Debit interest expense,$720;credit interest payable,$720.
• E)Debit interest payable,$240;credit interest expense,$240.

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Definitions:

Color

A property of light as seen by people, primarily based on different wavelengths being perceived as different hues.

Color Sensations

Experiences or perceptions of colors by the visual system.

Cones

Retinal receptors that are concentrated near the center of the retina and that function in daylight or in well-lit conditions. Cones detect fine detail and give rise to color sensations.

Fovea

A tiny depression in the retina of the eye where visual acuity is highest due to a high concentration of cones.