Pattie's Event Planning Service Has Just Prepared the Unadjusted Trial $\$ 8,000$

question 88

Multiple Choice

Pattie's Event Planning Service has just prepared the unadjusted trial balance,which shows the following balances: Salary expense: Debit $\$ 8,000$
Service revenues: Credit $\$ 3,000$
Interest expense: 0
On the first day of January,Pattie borrowed $1,800 on a one-year note payable bearing interest at 4% per year.The note specifies that principal and interest is to be paid in full at the end of the one-year period.On June 30,the adjusted trial balance will show what amount for Interest expense?

• A) Debit balance of $36
• B) Credit balance of $36
• C) Debit balance of $72
• D) Debit balance of $6

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