Make adjusting entry required in connection with note is

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Question 1: On November 1, 2020, Halton Corp. purchased equipment by signing a 6-month, 4% note for $180,000. The December 31, 2020, adjusting entry required in connection with this note is

Option 1: debit Interest Expense and credit Interest Payable, $3,600.

Option 2: debit Interest Expense and credit Interest Payable, $1,200.

Option 3: debit Interest Expense and credit Interest Payable, $7,200.

Option 4: debit Interest Expense and credit Cash, $1,200.

Reference no: EM132608939

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