Interest due on a note payable to First National Bank at December 31 equals $125. What adjusting entry is required to accrue this expense?
举一反三
- Of the following adjusting entries, which one results in an increase in liabilities and the recognition of an expense at the end of an accounting period? A: The entry to accrue salaries owed to employees at the end of the period. B: The entry to record revenue earned but not yet collected or recorded. C: The entry to record earned portion of rent previously received in advance from a tenant. D: The entry to write off a portion of unexpired insurance.
- What entry is required for the lessor in a finance lease? A: Lease receivable. B: Rental income. C: Interest expense. D: Depreciation expense.
- Smith borrowed $21,000 on a one year Note payable with an interest rate of 10% per year on June 1. He will repay the principal and interest at the end of the one-year period. Smith makes accrual adjustments at the end of each month. He should record interest expense of $2,100 on June 30.
- What entry is required for the lessor for an operating lease? A: Gain/loss on asset sale. B: Net investment in lease. C: Interest income. D: Depreciation expense.
- Amortizing a bond discount: A: Allocates a portion of the total discount to interest expense each interest period. B: Increases the market value of the Bonds Payable. C: Decreases the Bonds Payable account. D: Decreases interest expense each period. E: Increases cash flows from the bond.