The following information was extracted from the financial records of Lewis Company. Based on this information, the journal entry Lewis Company should prepare to record interest expense during 2010 would include:
A) a credit to Interest Payable for $32,800.
B) a credit to Discount on Notes Payable for $24,000.
C) a credit to Cash for $28,000.
D) a credit to Notes Payable for $4,800.

Question

The following information was extracted from the financial records of Lewis Company.  Based on this information, the journal entry Lewis Company should prepare to record interest expense during 2010 would include:
A) a credit to Interest Payable for $32,800. 
B) a credit to Discount on Notes Payable for $24,000. 
C) a credit to Cash for $28,000. 
D) a credit to Notes Payable for $4,800.

Quizplus · Accepted Answer

11eb49ea_73ca_fde3_ae87_c3938c6d50dc_TB5406_00

The Following Information Was Extracted from the Financial Records of Lewis