Ch. 8 Acct

Kinsella Seed borrowed $150,000 on October 1, 2023, at 10% interest. The interest and principal are due on October 1, 2024. What journal entry should be recorded on December 31, 2023? a. Debit Interest Expense 3,750; credit Interest Payable 3,750 b. Debit Interest Expense 7,500; credit Cash 7,500 c. Debit Interest Payable 3,750; credit Interest Expense 3,750 d. Debit Interest Expense 15,000; credit Interest Payable 15,000

a. Debit Interest Expense 3,750; credit Interest Payable 3,750

Kinsella Seed borrowed $237,000 on October 1, 2023, at 10% interest. The interest and principal are due on October 1, 2024. In addition to a debit to Note Payable for $237,000, what should the journal entry for repayment on October 1, 2024 include? a. Debit Interest Expense $5,925; debit Interest Payable $17,775; credit Cash $260,700. b. Debit Interest Expense $17,775; credit Cash $254,775. c. Debit Interest Expense $17,775; debit Interest Payable $5,925; credit Cash $23,700. d. Debit Interest E

c. Debit Interest Expense $17,775; debit Interest Payable $5,925; credit Cash $23,700.