Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 75

T-account analysis Answer these questions that are related to the following Interest Payable T-account:

a. What is the amount of the February 28 adjustment?

---

b. What account would most likely have been credited for the amount of the February transactions?

---

c. What account would most likely have been debited for the amount of the February 28 adjustment?

---

d. Why would this adjusting entry have been made ?

Interest Payable
	February 1 balance	1,200
February transactions 1,500	February 28 adjustment	?
	February 28 balance	2,100

Step 1 of 4

Transaction analysis-T-accounts

a.

The T-account presentation for provided transactions is as follows:

Therefore, the adjustment made on February 28 is .