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 helpapapreciated

Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…

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

See similar textbooks

Related questions

Question

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 help

apapreciated

Expert Solution

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions