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  1. business
  2. accounting
  3. on november 1, 2018, sky mountain co. borrowed $20

On November 1, 2018, Sky Mountain Co. borrowed $200,000 cash on a 1-year, 6% note...

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Accounting

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On November 1, 2018, Sky Mountain Co. borrowed $200,000 cash on a 1-year, 6% note payable that requires Sky Mountain to pay both principal and interest on October 31, 2019. Given no prior adjusting entries have been recorded, the adjusting journal entry on December 31, 2018, Sky Mountain's year-end, would include a: Multiple Choice credit to Cash of $2,000 debit to Interest Expense of $12,000 credit to Interest Payable of $2,000 credit to Note Payable of $2,000

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