Use the information above to answer the following question.A company pays $9,000 in interest on notes consisting of $6,000 of interest that was accrued during the last accounting period and $3,000 of interest that accumulated during this accounting period that has not yet been accrued on the books.The journal entry for the interest payment should:
A)debit Interest Expense $9,000 and credit Cash $9,000.
B)debit Cash $9,000 and credit Interest Payable $9,000.
C)debit Interest Expense $3,000,debit Interest Payable $6,000,and credit Cash $9,000.
D)debit Interest Payable $6,000,debit Accrued Interest $3,000,and credit Cash $9,000.

Question

Quizplus · Accepted Answer

The company has $6,000 of interest that was accrued during the last period and $3,000 of interest that has not yet been accrued. Therefore, the journal entry should debit Interest Expense for $3,000 (the amount accrued in this period), debit Interest Payable for $6,000 (the amount accrued in the previous period that has not yet been paid), and credit Cash for the total amount of $9,000. This reflects the fact that the company is paying $9,000 in interest, but only $3,000 of it relates to this accounting period.

Use the Information Above to Answer the Following Question