Lisa's financial year ends on 31 October 2019. She took a business loan of $20,000 at...

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Lisa's financial year ends on 31 October 2019. She took a business loan of $20,000 at the interest rate of 5% per annum on 1 August 2019. Interest is payable on 1 January and 1 July. How should the interest on the loan be reported in her financial statements? 20kx = 1.000 x 3/6 ▾ Goo A. $250 interest expense in the Statement of Comprehensive Income and $250 Prepaid amount in the Statement of Financial Position. B. $1,000 interest expense in the Statement of Comprehensive Income and $1,000 Prepaid amount in the Statement of Financial Position. C. $250 interest expense in the Statement of Comprehensive Income and $250 Accrued amount in the Statement of Financial Position. D. $1,000 interest expense in the Statement of Comprehensive Income and $1,000 Accrued amount in the Statement of Financial Position. DC Lisa's financial year ends on 31 October 2019. She took a business loan of $20,000 at the interest rate of 5% per annum on 1 August 2019. Interest is payable on 1 January and 1 July. How should the interest on the loan be reported in her financial statements? 20kx = 1.000 x 3/6 ▾ Goo A. $250 interest expense in the Statement of Comprehensive Income and $250 Prepaid amount in the Statement of Financial Position. B. $1,000 interest expense in the Statement of Comprehensive Income and $1,000 Prepaid amount in the Statement of Financial Position. C. $250 interest expense in the Statement of Comprehensive Income and $250 Accrued amount in the Statement of Financial Position. D. $1,000 interest expense in the Statement of Comprehensive Income and $1,000 Accrued amount in the Statement of Financial Position. DC

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The detailed answer for the above question is provided below The correct answer is D 1000 interest e... View the full answer