which of the following is true regarding a situation where the accounting period end 610366
Which of the following is true regarding a situation where the accounting period ends on a date that does not coincide with an interest payment date for a note payable that is outstanding?
- No adjusting entry is required. The interest expense will be recorded in the period it is paid.
- An adjusting entry is required and it contains a debit to Interest Expense and a credit to Interest Payable.
- An adjusting entry is required and it contains a debit to Note Payable and a credit to Interest Expense.
- An adjusting entry is required and it contains a debit to Income Summary and a credit to Interest Expense.