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 the current accounting period but has not yet been accrued on the books.The journal entry for the interest payment should include a:
A)debit to Interest Expense for $9,000 and a credit to Cash for $9,000.
B)debit to Cash for $9,000 and a credit to Interest Payable for $9,000.
C)debit to Interest Expense for $3,000,a debit to Interest Payable for $6,000,and a credit to Cash for $9,000.
D)debit to Interest Payable for $6,000,a debit to Accrued Interest for $3,000,and a credit to Cash for $9,000.

Question

Quizplus · Accepted Answer

The journal entry includes a debit to Interest Expense for $3,000 (the amount accumulated during the current accounting period),a debit to Interest Payable for $6,000 (the amount that accrued during the last accounting period),and a credit to Cash for $9,000 (the total amount paid).

A Company Pays $9,000 in Interest on Notes Consisting of $6,000