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A Company Borrows $5,000 on November 1, 2019, Giving a 10

Question 64

Multiple Choice

A company borrows $5,000 on November 1, 2019, giving a 10%, 180-day note payable. The adjusting entry on December 31, 2019, would include a:


A) credit to Interest Payable for $82.19.
B) credit to Interest Payable for $123.29.
C) credit to Interest Expense for $82.19.
D) credit to Cash for $82.19.

Correct Answer:

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