Jackson Bank lends Jabbour Clothing Company $125,000 on September 1. Jabbour signs a $125,000, 6%, six-month note.

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Jackson Bank lends Jabbour Clothing Company $125,000 on September 1. Jabbour signs a $125,000, 6%, six-month note. The journal entry made by Jabbour on December 31, its fiscal year-end, is

a. Debit Interest Payable and credit Interest Expense for $2,500.

b. Debit Interest Expense and credit Interest Payable for $2,500.

c. Debit Interest Payable and credit Cash for $2,500.

d. Debit Interest Expense and credit Cash for $2,500.

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Related Book For answer-question

Financial Accounting

ISBN: 978-0134725987

12th edition

Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

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Question Posted: Jun 17, 2019 01:03 PM

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Jackson Bank lends Jabbour Clothing Company $125,000 on September 1. Jabbour signs a $125,000, 6%, six-month note.

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Financial Accounting

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