Assuming that the transaction was a collateralized loan,which one of the following entries will Ritter make to record this transaction?
A) $\begin{array}{lrl}
\text { DR Cash } & 94,000 & \
\text { DR Prepaid interest } & 6,000 & \
\quad \text { CR Accounts receivable } & & 100,000
\end{array}$
B) $\begin{array}{lrr}
\text { DR Cash } & 94,000 & \
\text { DR Interest expense } & 6,000 & \
\quad \text { CR Loan Payable - Hisker } & & 100,000
\end{array}$
Enterprises
C) $\begin{array}{lrr}
\text { DR Cash } & 94,000 & \
\text { DR Prepaid interest } & 6,000 & \
\quad \text { CR Loan Payable-Hisker } & & 100,000
\end{array}$
Enterprises
D) $\begin{array}{l}
\text { DR Cash } &94,000\
\quad \text { CR Loan Payable-Hisker }&&94,000
\end{array}$

Question

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The Answer of Assuming that the transaction was a collateralized loan,which one of the following entries will Ritter make to record this transaction?
A) $\begin{array}{lrl}
\text { DR Cash } & 94,000 & \
\text { DR Prepaid interest } & 6,000 & \
\quad \text { CR Accounts receivable } & & 100,000
\end{array}$
B) $\begin{array}{lrr}
\text { DR Cash } & 94,000 & \
\text { DR Interest expense } & 6,000 & \
\quad \text { CR Loan Payable - Hisker } & & 100,000
\end{array}$
Enterprises
C) $\begin{array}{lrr}
\text { DR Cash } & 94,000 & \
\text { DR Prepaid interest } & 6,000 & \
\quad \text { CR Loan Payable-Hisker } & & 100,000
\end{array}$
Enterprises
D) $\begin{array}{l}
\text { DR Cash } &94,000\
\quad \text { CR Loan Payable-Hisker }&&94,000
\end{array}$

Assuming That the Transaction Was a Collateralized Loan,which One of the Following