Adjusting Entries: Accrued Expenses Video Lessons

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Problem: On October 1, 2009, Ethan Company borrowed $20,000 on a 6-month note with an annual interest rate of 10 percent. How much interest expense should be reported for the year ended December 31, 2009?  A. $ 333. B. $ 500. C. $ 2,000. D. $ 0.

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On October 1, 2009, Ethan Company borrowed $20,000 on a 6-month note with an annual interest rate of 10 percent. How much interest expense should be reported for the year ended December 31, 2009? 

A. $ 333.

B. $ 500.

C. $ 2,000.

D. $ 0.

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