What Is the Adjustment to Interest Expense on December 31

question 103

Multiple Choice

What is the adjustment to Interest Expense on December 31 if Elegant Company (debtor) owes Pristine Company (the holder of the note) a $22,000, 60-day, 10% note on December 12th? (Use a 360-day year. Do not round any intermediate calculations. Round your final answers to the nearest dollar.)

• A) $2,200
• B) $116
• C) $367
• D) $61

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