On July 1, 2016, Bauer Inc. loaned $5,000 cash to an employee, who signed a...
50.1K
Verified Solution
Link Copied!
Question
Accounting
On July 1, 2016, Bauer Inc. loaned $5,000 cash to an employee, who signed a note with 10% interest and is due in 12 months. On December 31, 2016, what should Bauer Inc. record as an adjusting entry?(Please provide an explanation of the question).
a. Debit notes receivable, $5,000; credit cash $5,000.
b. Debit interest expense, $250; credit interest payable, $250
c. Debit interest receivable, $250; credit interest revenue, $250.
d. Debit notes payable, $5,000; credit cash, $5,000.
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
