On 1 September Carlson Ltd borrowed $10,000 from the bank for three months at the annual interest rate of 9%. Principal and interest are payable to the bank on 1 December. If the company prepares monthly financial statements, the adjusting entry that the company should make for interest on 30 September, would be: Question 3 Answer 1. Increase Interest expense by $300 and increase Interest payable by $300 2. Increase Interest expense by $75 and increase Interest payable by $75 3. Increase Interest expense by $225 and increase Interest payable by $225 4. Increase Interest expense by $900 and increase Interest payable by $900

A company borrows money as needed on the first day of the month and repays principal and interest on the last day of the budget period, if cash is available.  For the third quarter of the year, they borrowed $5,000 in July, $7,000 in August and $4,000 in June.  The interest rate is 1% per month.  Assuming enough money is available on June 30th to repay the debt, the total amount of interest due is $

Ref-3: On 1St March, 2023, the company borrowed $120,000 cash from the local bank on a one-year, 6% bank loan, and the transaction was recorded properly. The interest expense incurred is payable to the bank at the end of 12 months. What is the required adjusting journal entry for the 2023 30th June financial year end in relation to the interest expense incurred?

A company borrowed $1 million on 1 June 2022 from Bank ABC by giving the bank a 3-month note with interest rate of 6% per annum. What is the interest expense for the year ended 30 June 2022? a. $0 b. $60,000 c. $10,000 d. $5,000

Windsor Corporation borrows $100,000 from a bank on November 1, Year 1, by signing a 9 percent, six-month note for the amount borrowed plus accrued interest due six months later on May 1, Year 2. What is the interest expense per month on this note?Multiple Choice$1,200$3,000$750$1,000

Bondi Bank agrees to lend Tawonga Construction Company Ltd $200 000 on 1 January. Tawonga Construction Company Ltd signs a $200 000, 4%, 9-month note. What is the adjusting entry required if Tawonga Construction Company Ltd prepares financial statements on 30 June? Group of answer choices Dr Interest Payable 4 000/ Cr Interest Expense 4 000 Dr Interest Expense 6 000/ Cr Cash 6 000 Dr Interest Payable 6 000/ Cr Cash 6 000 Dr Interest Expense 4 000/ Cr Interest Payable 4 000