On October 1, Eli's Carpet Service borrows $125,000 from First District Bank on a 3-month, $125,000, 8% note. What entry must Eli's Carpet Service make on December 31 before financial statements are prepared? Select one: a, Interest Expense....... Interest Payable 10,000 10,000 b. Interest Payable........ Interest Expense 2,500 2,500 2,500 C. Interest Expense... Interest Payable.... 2,500 2,500 d. Interest Expense..........-. Notes Payable.... 2,500 ......

On October 1, Eli's Carpet Service borrows $125,000 from First District Bank on a 3-month, $125,000, 8% note. What entry must Eli's Carpet Service make on December 31 before financial statements are prepared? Select one: a, Interest Expense....... Interest Payable 10,000 10,000 b. Interest Payable........ Interest Expense 2,500 2,500 2,500 C. Interest Expense... Interest Payable.... 2,500 2,500 d. Interest Expense..........-. Notes Payable.... 2,500 ......

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 12EA: Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank...

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