?

Financial Accounting

Free Version

Upgrade subject to access all content

Moderate

Adjusting Entries: Accrued Interest

FINACT-CGSE1K

Sadie Kay Company borrowed $12,000 by signing an eight-month, 8% note with Main Street Bank on September 1. The company will repay both the principal and interest when the note expires.

How much interest expense will Sadie Kay need to accrue at year-end on December 31st?

A

\$960

B

\$320

C

\$400

D

\$0