*Use the following information for Multiple Choice Questions 3-4: Kinsella Seed borrowed $200,000 on October 1, 2019, at 10% interest. The interest and principal are due on October 1, 2020. What journal entry should be recorded on December 31, 2019? A. Debit Interest Expense 5,000; credit Interest Payable 5,000. B. Debit Interest Payable 5,000; credit Interest Expense 5,000. C. Debit Interest Receivable 20,000; credit Interest Expense 20,000. D. No entry is necessary.

From October 1, 2019 to December 31, 2019; Interest is accrued for 3 months. Interest Expense =…

Answered: *Use the following information for…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter3: Accrual Accounting

Section: Chapter Questions

Problem 5MCQ: Dallas Company loaned to Ewing Company on December 1, 2019. Ewing will pay Dallas $720 of interest...

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*Use the following information for Multiple Choice Questions 3-4: Kinsella Seed borrowed $200,000 on October 1, 2019, at 10% interest. The interest and principal are due on October 1, 2020. What journal entry should be recorded on December 31, 2019?

A. Debit Interest Expense 5,000; credit Interest Payable 5,000.
B. Debit Interest Payable 5,000; credit Interest Expense 5,000.
C. Debit Interest Receivable 20,000; credit Interest Expense 20,000.
D. No entry is necessary.

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