On October 1, 2014, Dakota Company issued an $800,000, 10%, nine-month interest-bearing note. If the Dakota Company is preparing financial statements at December 31, 2014, the adjusting entry for accrued interest will include a: Solution Answer should be (D) debit to interest expense of 20000 entry : Interest expenses 20000 to Accrued interest 20000 thanks .

1. On October 1, 2014, Dakota Company issued an $800,000, 10%, nine-month interest-bearing
note. If the Dakota Company is preparing financial statements at December 31, 2014, the
adjusting entry for accrued interest will include a:
credit to Interest Payable of $40,000.
Solution
Answer should be (D) debit to interest expense of 20000
entry :
Interest expenses 20000
to Accrued interest 20000
thanks