Question: Refer to the information for Kinsella Seed above What journal

Refer to the information for Kinsella Seed above. What journal entry should be made with respect to the interest payment on October 1, 2012?
a. Debit Cash 20,000; credit Interest Expense 15,000; credit Interest Payable 5,000.
b. Debit Interest Expense 15,000; credit Cash 15,000.
c. Debit Interest Expense 20,000; credit Cash 20,000.
d. Debit Interest Expense 15,000; debit Interest Payable 5,000; credit Cash 20,000.
Kinsella Seed borrowed $200,000 on October 1, 2011, at 10 percent interest. The interest and principal are due on October 1, 2012.

View Solution:

Sale on SolutionInn
  • CreatedSeptember 22, 2015
  • Files Included
Post your question