On February 1, 2018, a company borrowed $10,000 at 3% from the bank. Interest is payable...
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On February 1, 2018, a company borrowed $10,000 at 3% from the bank. Interest is payable every year on February 1st beginning February 1, 2019. The accountant is preparing the company's financial statements for the period ending May 31, 2018. The journal entry to record the interest on the loan on May 31, 2018 is: O Debit interest expense and credit cash $300 Debit interest expense and credit cash $100 Debit interest expense and credit interest payable $300 O Debit interest expense and credit interest payable $100 On February 1, 2018, a company borrowed $10,000 at 3% from the bank. Interest is payable every year on February 1st beginning February 1, 2019. The accountant is preparing the company's financial statements for the period ending May 31, 2018. The journal entry to record the interest on the loan on May 31, 2018 is: O Debit interest expense and credit cash $300 Debit interest expense and credit cash $100 Debit interest expense and credit interest payable $300 O Debit interest expense and credit interest payable $100
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solution The Correct answer is option C date particulars debit credit 310518 Interest expense 300 ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0078025839
9th edition
Authors: J. David Spiceland, James Sepe , Mark Nelson , Wayne Thomas
Posted Date:
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