Jackson Bank lends Jabbour Clothing Company $125,000 on September 1. Jabboursigns a $125,000, 6%, six-month note. The journal entry made by Jabbour on December 31, itsfiscal year-end, isa. debit Interest Payable and credit Interest Expense for $2,500.b. debit Interest Expense and credit Interest Payable for $2,500.c. debit Interest Payable and credit Cash for $2,500.d. debit Interest Expense and credit Cash for $2,500
Jackson Bank lends Jabbour Clothing Company $125,000 on September 1. Jabboursigns a $125,000, 6%, six-month note. The journal entry made by Jabbour on December 31, itsfiscal year-end, isa. debit Interest Payable and credit Interest Expense for $2,500.b. debit Interest Expense and credit Interest Payable for $2,500.c. debit Interest Payable and credit Cash for $2,500.d. debit Interest Expense and credit Cash for $2,500
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jackson Bank lends Jabbour Clothing Company $125,000 on September 1. Jabbour
signs a $125,000, 6%, six-month note. The
fiscal year-end, is
a. debit Interest Payable and credit Interest Expense for $2,500.
b. debit Interest Expense and credit Interest Payable for $2,500.
c. debit Interest Payable and credit Cash for $2,500.
d. debit Interest Expense and credit Cash for $2,500
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