Miranda Company borrowed $114,000 cash on September 1, 2014, and signed a one-ye
ID: 2488622 • Letter: M
Question
Miranda Company borrowed $114,000 cash on September 1, 2014, and signed a one-year 4%, interest-bearing note payable. Assume no adjusting entries have been made during the year. Which of the following would be the required adjusting entry at the end of the December 31, 2014 accounting period? option 1,2,3 or 4)
Miranda Company borrowed $114,000 cash on September 1, 2014, and signed a one-year 4%, interest-bearing note payable. Assume no adjusting entries have been made during the year. Which of the following would be the required adjusting entry at the end of the December 31, 2014 accounting period? option 1,2,3 or 4)
Explanation / Answer
Dr Cr Interest Expenses $1,520 Interest Payable $1,520 Interest expenses will be accured for 4 months from 1 Sep-31 Dec 2014 114000*4%*4/12 1520
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