On March 1, 20X1, your calendar year company borrows $10,000. Terms require repayment of principal...
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On March 1, 20X1, your calendar year company borrows $10,000. Terms require repayment of principal andannual interest of 9% after 4 years. At year-end 20X1, an adjusting entry accrues $550 interest expense. If you discover the error before the books are closed, what is the correcting entry?
a.Interest Payable600
Interest Expense600
b.Interest Expense600
Interest Payable600
c.Interest Expense200
Interest Payable200
d.Interest Payable200
Interest Expense200
On March 1, 20X1, your calendar year company borrows $10,000. Terms require repayment of principal andannual interest of 9% after 4 years. At year-end 20X1, an adjusting entry accrues $550 interest expense. If you discover the error before the books are closed, what is the correcting entry?
a.Interest Payable600
Interest Expense600
b.Interest Expense600
Interest Payable600
c.Interest Expense200
Interest Payable200
d.Interest Payable200
Interest Expense200
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