Manhattan Company recorded an adjusting entry to accrue Interest owed of $600 as of December 31, Year
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Question:
Manhattan Company recorded an adjusting entry to accrue Interest owed of $600 as of December 31, Year 1. When the related note was paid during Year: 2. the company paid $1.050 in interest. Which of the following journal entries correctly records this Year 2 transaction?
(Assume that the entry to record the payment of the note itself was recorded in a separate journal entry)
Multiple choices
- a.
Interest Expense | 450 | |
Interest payable | 600 | |
Cash | | 1050 |
- b.
Interest Expense | 1050 | |
Cash | | 600 |
Interest payable | | 450 |
Related Book For
Horngrens Accounting
ISBN: 978-0133855371
10th Canadian edition Volume 1
Authors: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo-Ann L. Johnston, Peter R. Norwood
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