On May 1, 2010, Arch Corporation borrowed $2,500 on a two-year, 6% note payable....

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JEWELYB

New member
...Interest is due and payable a? On May 1, 2010, Arch Corporation borrowed $2,500 on a two-year, 6% note payable. Interest is due and payable at the end of each six months. Arch makes all interest payments on schedule. The correct December 31, 2010, adjusting entry would be?

a. Interest Expense 25
Interest Payable 25

b. Interest Payable 100
Cash 100

c. Interest Expense 25
Cash 25

d. Interest Expense 100
Interest Payable 100
 
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