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

question 134

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) Interest Expense 164
• Cash 164
• B) Cash 164
• Interest Expense 164
• C) Interest Expense 164
• Interest Payable 164
• D) Interest Expense 164
• Notes Payable 164

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