Mama’s Pizaa Shop

Mama’s Pizaa Shop borrowed $8,000 at 9% interest on May 1, 2011, with principal and interest due on October 31, 2012. The company’s fiscal year ends June 30, 2011. What adjusting entry would the company record on June 30, 2011?a. No entryb. Interest Expense 240Interest Payable 240c. Interest Expense 120Interest Payable 120d. Prepaid Interest 120Interest Payable 120Question:Mama’s Pizaa Shop borrowed $8,000 at 9% interest on May 1, 2011, with principal and interest due on October 31,2012. The company’s fiscal year ends June 30, 2011. What adjusting entry…

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