Fiat borrowed $80,000 on October 1, 2019. Fiat will not make any payments until October 1, 2021, at that time, Fiat will pay 84,000. Which of the following correctly states the annual financial statement as of December 31, 2020? OAInterest payable of $2,500; interest expense of $2,500O BInterest payable of $1,500; interest expense of $2,000CInterest payable of $4,000; interest expense of $2,500DInterest payableof $2,500; interest expense of $2,000Unanswered

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OA Interest payable of $2,500; interest expense of $2,500 O B Interest payable of $1,500; interest expense of $2,000 C Interest payable of $4,000; interest expense of $2,500 D Interest payable of $2,500; interest expense of $2,000 Unanswered

OA Interest payable of $2,500; interest expense of $2,500 O B Interest payable of $1,500; interest expense of $2,000 C Interest payable of $4,000; interest expense of $2,500 D Interest payable of $2,500; interest expense of $2,000 Unanswered

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Fiat borrowed $80,000 on October 1, 2019. Fiat will not make any payments until October 1, 2021, at that time, Fiat will pay 84,000. Which of the following correctly states the annual financial statement as of December 31, 2020?

OA
Interest payable of $2,500; interest expense of $2,500
O B
Interest payable of $1,500; interest expense of $2,000
C
Interest payable of $4,000; interest expense of $2,500
D
Interest payable
of $2,500; interest expense of $2,000
Unanswered

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