Question

XYZ Corp. borrowed $200,000 on 4/1/X3 executing a note bearing interest at an annual rate of 10% with all principal and interest due at maturity on 4/1/X4. An adjusting entry at 12/31/X3 to record 20X3 interest on the note would include a debit to Interest Expense for ________,

Answer 1

The adjusting entry to record the 20X3 interest on the note would include a debit to Interest Expense for $20,000.

Step-by-step explanation:

The adjusting entry to record the 20X3 interest on the note would include a debit to Interest Expense for $20,000.