Reference no: EM132568692

Problem 1: Which of the following procedures describe the entry to adjust the accounts for interest accrued at the end of the accounting period for a note payable?

a. debit Interest Receivable; credit Interest Revenue

b. debit Interest Expense; credit Interest Payable

c. debit Interest Payable; credit Interest Receivable

d. debit Interest Expense; credit Note Payable

Problem 2: What are the factors involved in computing interest on a note?

a. term, interest rate, and principal

b. note payable, interest expense, and interest rate

c. interest rate and principal

d. interest receivable, interest rate, and term