Use This Information to Answer the Following Question $\$ 25,000$

question 49

Multiple Choice

Use this information to answer the following question. The transactions below pertain to Broyer Company,whose fiscal year ends September 30.
Sept. 10 Received cash for a 90-day, 12 percent, $\$ 25,000$ note payable. Interest is in addition to the face value.
30 Made end-of-year adjusting entry to accrue interest expense.
The September 30 adjusting entry,rounded to the nearest dollar,to accrue the interest expense on the note payable is:

• A)
• \(\begin{array}{llr}
• \text {Interest Expense } &164\\
• \text {Cash } &&164\\
• \end{array}\)
• B)
• \(\begin{array}{llr}
• \text {Cash} &164\\
• \text { Interest Expense } &&164\\
• \end{array}\)
• C)
• \(\begin{array}{lll}
• \text { Interest Expense } & 164 \\
• \text { Interest Payable } & & 164
• \end{array}\)
• D)
• \(\begin{array}{ll}
• \text { Interest Expense } & 164 \\
• \text { Notes Payable } &&164
• \end{array}\)

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