At the end of December, a business has accrued $1,450 of interest on a loan, on...

 

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At the end of December, a business has accrued $1,450 of interest on a loan, on which it will not make another payment until the next year. The adjusting entry necessary would be journalized as a debit to Interest Payable and a credit to Interest Expense of $1,450 debit to Interest Expense and a credit to Interest Payable of $1,450 O debit to Prepaid Interest and a credit to Interest Expense of $1,450 O debit to Interest Expense and a credit to Prepaid Interest of $1,450 At the end of December, a business has accrued $1,450 of interest on a loan, on which it will not make another payment until the next year. The adjusting entry necessary would be journalized as a debit to Interest Payable and a credit to Interest Expense of $1,450 debit to Interest Expense and a credit to Interest Payable of $1,450 O debit to Prepaid Interest and a credit to Interest Expense of $1,450 O debit to Interest Expense and a credit to Prepaid Interest of $1,450

Answer rating: 100% (QA)

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