Martin & Associates borrowed $5,000 on April 1, 2010 at 8% interest with both principal and interest due on March...

profilejantam

Martin & Associates borrowed $5,000 on April 1, 2010 at 8% interest with both principal and interest due on March 31, 2011.

 

Question 1: Which of the following journal entries should the firm use to accrue interest at the end of each month?

A. Dr. Interest payable, Cr. Cash

B. Dr. Interest payable, Cr. Interest receivable

C. Dr. Interest expense, Cr. Interest payable

D. Dr. Interest payable, Cr. Interest expense

 

Question 2: How much should be in the firm's interest payable account at December 31, 2010?

A. $300

B. $400

C. $0

D. $333

 

Question 3: Which of the following journal entries should the firm use to record the payment of interest on March 31, 2011?

A. Dr. Interest expense, Dr. Interest payable, Cr. Cash

B. Dr. Interest payable, Cr. Interest receivable

C. Dr. Interest expense, Cr. Interest payable

D. Dr. Interest payable, Cr. Interest expense

    • 10 years ago
    • 5
    Answer(4)

    Purchase the answer to view it

    blurred-text
    • attachment
      martin.docx

    Purchase the answer to view it

    blurred-text
    NOT RATED
    • attachment
      answers.docx

    Purchase the answer to view it

    blurred-text
    NOT RATED
    • attachment
      choice.docx

    Purchase the answer to view it

    blurred-text
    NOT RATED
    • attachment
      martin_and_associates_solutions.docx
    Bids(0)