Carroll Company accrued interest of $250 on a $5,000,10% note payable at December 31.The annual interest payment will be made on July 1.The reversing entry will include a(n)________.
A)credit to Interest Payable for $250
B)debit to Notes Payable for $5,000
C)credit to Interest Expense of $250
D)debit to Cash for $250

Question

Quizplus · Accepted Answer

The Answer of Carroll Company accrued interest of $250 on a $5,000,10% note payable at December 31.The annual interest payment will be made on July 1.The reversing entry will include a(n)________.
A)credit to Interest Payable for $250
B)debit to Notes Payable for $5,000
C)credit to Interest Expense of $250
D)debit to Cash for $250

Carroll Company Accrued Interest of $250 on a $5,000,10% Note