Tate Company purchased equipment on November 1, 2012 and gave a - 13214

Solution Posted by
yousafbhutta

yousafbhutta

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Solution Detail
Price: $2.00
  • From: Business,
  • Posted on: Tue 31 Jul, 2012
  • Request id: None
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Request Description

 

Tate Company purchased equipment on November 1, 2012 and gave a 3-month, 9% note with a face value of $40,000. The December 31, 2012 adjusting entry is

 

debit Interest Expense and credit Interest Payable, $3,600.

 

 

 

debit Interest Expense and credit Cash, $600.

 

 

 

debit Interest Expense and credit Interest Payable, $900.

 

 

 

debit Interest Expense and credit Interest Payable, $600.

 

Solution Description

 

Tate Company purchased equipment on November 1, 2012 and gave a 3-month, 9% note with a face value of $40,000. The December 31, 2012 adjusting entry is

 

debit Interest Expense and credit Interest Payable, $3,600.

 

 

 

Attachments
Note payable mcq.docx
Note payable mc...