Carroll Company Accrued Interest of $250 on a $5,000,10% Note

question 87

Multiple Choice

Carroll Company accrued interest of $250 on a $5,000,10% note payable at December 31.The annual interest payment will be made on July 1.The reversing entry will include a(n) ________.

• A)credit to Interest Payable for $250
• B)debit to Notes Payable for $5,000
• C)credit to Interest Expense of $250
• D)debit to Cash for $250

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Definitions:

Adult Children

Individuals who are legally considered adults but are referred to in context as children due to their relationship to their parents or guardians.

Spouse's Partner

Typically refers to an individual who is in a committed relationship or marriage with another person; it can also imply situations of polyamory or non-monogamous relationships.

Adult Children

Individuals who are legally adults, typically over the age of 18, considered in relation to their parents or parental figures.

Household Labor

Tasks and chores undertaken in managing the functioning of a household, including cleaning, cooking, and maintenance.