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On January 1, Clive Corporation Signed a $450,000, 5%, 30-Year

Question 71

Multiple Choice

On January 1, Clive Corporation signed a $450,000, 5%, 30-year mortgage that requires semiannual payments of $14,559 on June 30 and December 31 of each year. The journal entry to record the second semiannual payment would be: (Round your final answer to the nearest dollar.)


A) debit Interest Expense, $11,167; debit Mortgage expense, $3,392; credit Cash, $14,559.
B) debit Interest Expense, $3,392; debit Mortgage Payable, $11,167; credit Cash, $14,559.
C) debit Interest Expense, $11,167; debit Mortgage Payable, $3,392; credit Cash, $14,559.
D) debit Mortgage Payable, $14,559; credit Cash, $14,559.

Correct Answer:

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