Carroll Company accrued interest of $500 on a $10,000, 10% note payable at December 31. The annual interest payment will be made on July 1. The reversing entry will include a ________.
A) credit to Interest Payable for $500
B) debit to Notes Payable for $10,000
C) credit to Interest Expense of $500
D) debit to Cash for $500

Question

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The Answer of Carroll Company accrued interest of $500 on a $10,000, 10% note payable at December 31. The annual interest payment will be made on July 1. The reversing entry will include a ________.
A) credit to Interest Payable for $500
B) debit to Notes Payable for $10,000
C) credit to Interest Expense of $500
D) debit to Cash for $500

Carroll Company Accrued Interest of $500 on a $10,000, 10