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
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
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