Wisconsin Bank lends Local Furniture Company $80,000 on November 1. Local Furniture Company signs a $80,000, 6%, 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: A.debit Interest Expense and credit Cash for $800 B.debit Interest Payable and credit Interest Expense for $800 C.debit Interest Expense and credit Interest Payable for $800 D.debit Interest Payable and credit Cash for $800thanks for helpahpelah

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Answered: Wisconsin Bank lends Local Furniture…

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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Wisconsin Bank lends Local Furniture Company $80,000 on November 1. Local Furniture Company signs a $80,000, 6%, 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:

debit Interest Expense and credit Cash for $800

debit Interest Payable and credit Interest Expense for $800

debit Interest Expense and credit Interest Payable for $800

debit Interest Payable and credit Cash for $800

thanks for helpa

hpelah

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