On December 31,2018,interest of $1,500 Has Accrued on a Bank

question 84

Essay

On December 31,2018,interest of $1,500 has accrued on a bank note.This interest payment is due on January 20,2019.If no adjusting entry is made on December 31,2018,indicate the effect on assets,liabilities,equity,and net income.
$$\begin{array} { | l | l | } \hline & \text { Understated, Overstated, No Effect } \\\hline \text { Assets } & \\\hline \text { Liabilities } & \\\hline \text { Equity } & \\\hline \text { Net Income } & \\\hline\end{array}$$

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