On November 1, Phan Company Borrowed $50,000, at 6% Annual

question 197

Multiple Choice

On November 1, Phan Company borrowed $50,000, at 6% annual interest, from First Security Bank. Interest will be paid when the loan matures one year from the issue date. What is correct adjusting entry related to the interest that Phan must make on December 31, the end of the company's fiscal year?

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Definitions:

Account Numbers

Unique sequences of numbers assigned to a bank or financial account, facilitating identification and ensuring transactions are properly recorded.

Fourth Generation

Often associated with mobile telecommunications technology, represents the fourth generation of development, succeeding previous generations with improved speed and capabilities.

Mobile Networks

Wireless communication networks that allow devices to send and receive data without a physical connection.

WiMAX

Worldwide Interoperability for Microwave Access, a wireless communication standard designed to provide high-speed broadband access over long distances.