What Would Be the Adjusting Entry for a Note Payable

question 147

Multiple Choice

What would be the adjusting entry for a note payable whose interest is not included in the face amount of the note?

• A)Debit Interest Receivable and credit Interest Income.
• B)Debit Interest Expense and credit Cash.
• C)Debit Interest Expense and credit Interest Payable.
• D)Debit Cash and credit Notes Payable.

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Definitions:

Intellectual Disability

A situation described by considerable impairments in both intellectual abilities and in the adaptive behavior that includes a variety of daily social and practical skills.

Psychogenic Factors

Mental or emotional forces that can influence the occurrence or severity of a physical or psychological condition.

Autism Spectrum Disorder

A spectrum of conditions affecting neurodevelopment, identified by difficulties in social interaction, recurring behaviors, and issues with both spoken and nonverbal communication.

Etiology

The study of the causes or origins of a disease or condition, focusing on determining why certain conditions occur.