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 ......

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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