Interest expense in the worksheet's trial balance column is $3,000.Interest expense in the income statement column is $7,000.Which of the following entries would have caused this difference?
A) A $7,000 credit to Interest expense in the worksheet's adjustments column
B) A $7,000 credit to Interest payable in the worksheet's adjustments column
C) A $4,000 debit to Interest expense in the worksheet's adjustments column
D) A $4,000 credit to Interest expense in the worksheet's adjustments column

Question

Quizplus · Accepted Answer

The difference between the trial balance column and the income statement column suggests that $4,000 of interest expense was not recorded in the trial balance column. Therefore, a $4,000 debit to Interest expense in the adjustments column would bring the trial balance column balance into agreement with the income statement column balance. The other options would not fix the discrepancy.

Interest Expense in the Worksheet's Trial Balance Column Is $3,000