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  3. on november 1, alan company signed a 120-day, 12%

On November 1, Alan Company signed a 120-day, 12% note payable, with a face value...

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Accounting

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On November 1, Alan Company signed a 120-day, 12% note payable, with a face value of $18,900. What is the adjusting entry for the accrued interest at December 31 on the note? (Use 360 days a year.) Multiple Choice 0 Debit Interest Payable, $756; credit Interest Expense, $756. 0 Debit Interest Expense, $378; credit Interest Payable, $378. 0 No adjusting entry is required. 0 Debit Interest Expense, $504; credit Interest Payable, $504. 0 Debit interest payable, $252; credit interest expense, $252. A company issues 9%, 7-year bonds with a par value of $260,000 on January 1 at a price of $273,732, when the market rate of interest was 8%. The bonds pay interest semiannually. The amount of each semiannual interest payment is: $23,400. $11,700. $10,400. $20,800. A company issued 6-year, 8% bonds with a par value of $350,000. The market rate when the bonds were issued was 7.5%. The company received $353,500 cash for the bonds. Using the straight-line method, the amount of recorded interest expense for the first semiannual interest period is: Multiple Choice o $13,708. o $27,708. o $14,000. o $28,000. o $14,292

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