The Interest Expense in the worksheet's unadjusted trial balance column is $3,000.Interest Expense in the income statement column is $7,000.Which of the following entries would have caused this difference?

Question

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The difference between the unadjusted trial balance column and the income statement column for Interest Expense is $4,000 ($7,000 - $3,000). This means that there is $4,000 of interest expense that has been incurred but not yet recorded in the unadjusted trial balance. To correct for this, a $4,000 debit should be made to Interest Expense in the adjustments column, which will increase the balance in the account and bring it in line with the actual amount of interest expense incurred. Option A is incorrect because it would result in an overstatement of Interest Expense. Option B is incorrect because it would not have any impact on the difference between the two columns. Option D is incorrect because it would result in a decrease in the balance of Interest Expense, which would not address the difference between the two columns.

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