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Watunga County Bank Agrees to Lend Hoffman Granite Company $600000 $\begin{array}{lrr} \text { Interest Expense } &24,000\\ \text { Interest Payable } &&24,000\\\end{array}$

Question 191

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Watunga County Bank agrees to lend Hoffman Granite Company $600000 on January 1. Hoffman Granite Company signs a $600000 8% 9-month note. What is the adjusting entry required if Hoffman Granite Company prepares financial statements on June 30? a.
$\begin{array}{lrr} \text { Interest Expense } &24,000\\ \text { Interest Payable } &&24,000\\\end{array}$

b.
$\begin{array}{lrr} \text {Interest Expense } &24,000\\ \text { Cash} &&24,000\\\end{array}$

c.
$\begin{array}{lrr} \text {Interest Payable } &24,000\\ \text {Cash } &&24,000\\\end{array}$

d.
$\begin{array}{lrr} \text { Interest Payable} &24,000\\ \text { Interest Expense } &&24,000\\\end{array}$

Watunga County Bank Agrees to Lend Hoffman Granite Company $600000 Interest Expense 24,000 Interest Payable 24,000\begin{array}{lrr} \text { Interest Expense } &24,000\\ \text { Interest Payable } &&24,000\\\end{array} Interest Expense Interest Payable ​24,000​24,000​

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Watunga County Bank Agrees to Lend Hoffman Granite Company $600000 $\begin{array}{lrr} \text { Interest Expense } &24,000\\ \text { Interest Payable } &&24,000\\\end{array}$

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