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Unquiet Hands, Inc  Dr.  Interest payable Cr. Cash \begin{array}{|l|l|}\hline \text { Dr. } & \text { Interest payable } \\\hline \mathrm{Cr} . & \text { Cash } \\\hline\end{array}

Question 15

Multiple Choice

Unquiet Hands, Inc.borrowed $30,000 on October 1, 2019 at 6% interest with both principal and interest due on September 30, 2020.Which of the following journal entries should Unquiet Hands, Inc.use to record the payment of interest on September 30, 2020?


A)  Dr.  Interest payable Cr. Cash \begin{array}{|l|l|}\hline \text { Dr. } & \text { Interest payable } \\\hline \mathrm{Cr} . & \text { Cash } \\\hline\end{array}

B)  Dr.  Interest receivable Cr. Interest payable \begin{array}{|c|c|}\hline \text { Dr. } & \text { Interest receivable } \\\hline \mathrm{Cr} . & \text { Interest payable } \\\hline\end{array}

C)  Dr.  Interest expense Cr. Interest payable \begin{array}{|l|l|}\hline \text { Dr. } & \text { Interest expense } \\\hline \mathrm{Cr} . & \text { Interest payable } \\\hline\end{array}

D)  Dr.  Interest payable Cr. Interest expense \begin{array}{|l|l|}\hline \text { Dr. } & \text { Interest payable } \\\hline \mathrm{Cr} . & \text { Interest expense } \\\hline\end{array}

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