The Interest Expense in the worksheet's unadjusted trial balance column is $3,500.Interest Expense in the income statement column is $9,000.Which of the following entries would have caused this difference?
A)a $9,000 credit to Interest Expense in the worksheet's adjustments column
B)a $9,000 credit to Interest Payable in the worksheet's adjustments column
C)a $5,500 debit to Interest Expense in the worksheet's adjustments column
D)a $5,500 credit to Interest Expense in the worksheet's adjustments column

Question

Quizplus · Accepted Answer

The difference between the unadjusted trial balance and the income statement column indicates that interest expense of $5,500 was accrued but not yet recorded in the unadjusted trial balance. This means that a $5,500 debit entry is needed in the adjustments column to increase the interest expense account to its correct balance of $9,000. Option A and B are incorrect because they do not account for the $3,500 already recorded in the unadjusted trial balance. Option D is incorrect because it would have the opposite effect of reducing the interest expense account instead of increasing it.

The Interest Expense in the Worksheet's Unadjusted Trial Balance Column