On June 1,Edison,Inc

question 165

True/False

On June 1,Edison,Inc.borrowed $24,000 on a one-year Note Payable with an interest rate of 10% per year.It will repay the principal and interest at the end of the one-year period.The company makes accrual adjustments at the end of each month.The company should record interest expense of $2,400 on June 30.

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Definitions:

Journal Entry

A record of financial transactions in accounting, typically consisting of a debit to one or more accounts and a credit to another, balancing out.

Liabilities

Financial obligations or debts that a company owes to others, which are expected to be paid in the future.

Journal Entry

A record of financial transactions in the double-entry bookkeeping system, indicating credits and debits in accounts.

Decedent's Death

A term referring to the time of death of an individual, often used in legal, tax, and financial contexts.