On August 1, Wilshire Company borrowed $150,000 from People's National Bank on a 1-year, 8% note. Required: Hide What adjusting entry should Wilshire make at December 31? Dec. 31 1 result is available, use up and down arrow keys to navigate. (Record accrual of interest expense)

On August 1, Wilshire Company borrowed $150,000 from People's National Bank on a 1-year, 8% note. Required: Hide What adjusting entry should Wilshire make at December 31? Dec. 31 1 result is available, use up and down arrow keys to navigate. (Record accrual of interest expense)

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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Question

On August 1, Wilshire Company borrowed $150,000 from People's National Bank on a 1-year, 8% note.

Required:

Hide

What adjusting entry should Wilshire make at December 31?

Dec. 31

1 result is available, use up and down arrow keys to navigate.

(Record accrual of interest expense)

Definition Definition Entries made at the end of every accounting period to precisely replicate the expenses and revenue of the current period. This is also known as end of period adjustment. It can also refer to financial reporting that corrects errors made previously in the accounting period. Every adjustment entry affects at least one real account and one nominal account.

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