On August 15, 2022, Kinney Industries signs a $200,000, 8%, twelve-month note payable.Which of the following entries correctly records the accrued interest on December 31, 2022?
A)Dr Interest Expense $6,000
Cr Interest Payable $6,000
B)Dr Interest Expense $5,333.33
Cr Interest Payable $5,333.33
C)Dr Interest Expense $16,000
Cr Interest Payable $16,000
D)Dr Interest Expense $10,000
Cr Interest Payable $10,000

Question

On August 15, 2022, Kinney Industries signs a $200,000, 8%, twelve-month note payable.Which of the following entries correctly records the accrued interest on December 31, 2022?
A)Dr Interest Expense $6,000 
Cr Interest Payable $6,000
B)Dr Interest Expense $5,333.33
 Cr Interest Payable $5,333.33
C)Dr Interest Expense $16,000 
Cr Interest Payable $16,000
D)Dr Interest Expense $10,000 
Cr Interest Payable $10,000

Quizplus · Accepted Answer

The Answer of On August 15, 2022, Kinney Industries signs a $200,000, 8%, twelve-month note payable.Which of the following entries correctly records the accrued interest on December 31, 2022?
A)Dr Interest Expense $6,000 
Cr Interest Payable $6,000
B)Dr Interest Expense $5,333.33
 Cr Interest Payable $5,333.33
C)Dr Interest Expense $16,000 
Cr Interest Payable $16,000
D)Dr Interest Expense $10,000 
Cr Interest Payable $10,000

On August 15, 2022, Kinney Industries Signs a $200,000, 8