Refer to the information for Kinsella Seed above What journal
Refer to the information for Kinsella Seed above. What journal entry should be recorded on December 31, 2011?
a. Debit Interest Expense 5,000; credit Interest Payable 5,000.
b. Debit Interest Receivable 20,000; credit Interest Expense 20,000.
c. Debit Interest Payable 5,000; credit Interest Expense 5,000.
d. No entry is necessary.
Kinsella Seed borrowed $200,000 on October 1, 2011, at 10 percent interest. The interest and principal are due on October 1, 2012.
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