On October 1, 2015, Attra Inc. borrows $213,000 on a three-year note that requires the...
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Accounting
On October 1, 2015, Attra Inc. borrows $213,000 on a three-year note that requires the company to pay 8% interest on March 31 and September 30. On December 31, 2015, the adjusting entry to accrue interest on the note should debit:
1.Interest Payable and credit Interest Expense for $4,260.
2.Interest Expense and credit Cash for $8,520.
3.Interest Expense and credit Interest Payable for $8,520.
4.Interest Expense and credit Interest Payable for $4,260.
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