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Wisconsin Bank lends Local Furniture Company $70,000 on November 1. Local Furniture Company signs a $70,000, 3%, 4-month note. The fiscal year end of Local Furniture Company is December 31. The journal entry made by Local Furniture Company on December 31 is: OA. debit Interest Payable and credit Cash for $350 O B. debit Interest Expense and credit Cash for $350 O C. debit Interest Payable and credit Interest Expense for $350 O D. debit Interest Expense and credit Interest Payable for $350

Wisconsin Bank lends Local Furniture Company $70,000 on November 1. Local Furniture Company signs a $70,000, 3%, 4-month note. The fiscal year end of Local Furniture Company is December 31. The journal entry made by Local Furniture Company on December 31 is: OA. debit Interest Payable and credit Cash for $350 O B. debit Interest Expense and credit Cash for $350 O C. debit Interest Payable and credit Interest Expense for $350 O D. debit Interest Expense and credit Interest Payable for $350

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter22: Providing And Obtaining Credit
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Problem 1P: Cost of Bank Loan On March 1, Minnerly Motors obtains a business loan from a local bank. The loan is...
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Wisconsin Bank lends Local Furniture Company $70,000 on November 1. Local Furniture Company signs a $70,000, 3%, 4-month note. The fiscal year end of Local Furniture Company is December 31. The journal entry made by Local Furniture Company on December 31 is: O A. debit Interest Payable and credit Cash for $350 O B. debit Interest Expense and credit Cash for $350 O C. debit Interest Payable and credit Interest Expense for $350 O D. debit Interest Expense and credit Interest Payable for $350
Transcribed Image Text:Wisconsin Bank lends Local Furniture Company $70,000 on November 1. Local Furniture Company signs a $70,000, 3%, 4-month note. The fiscal year end of Local Furniture Company is December 31. The journal entry made by Local Furniture Company on December 31 is: O A. debit Interest Payable and credit Cash for $350 O B. debit Interest Expense and credit Cash for $350 O C. debit Interest Payable and credit Interest Expense for $350 O D. debit Interest Expense and credit Interest Payable for $350
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