Wisconsin Bank lends Local Furniture Company $110,000 on November 1.Local Furniture Company signs a $110,000,6%,4-month note.The fiscal year end of Local Furniture Company is December 31.The journal entry made by Local Furniture Company on December 31 is:
A) debit Interest Expense and credit Interest Payable for $1,100.
B) debit Interest Payable and credit Interest Expense for $1,100.
C) debit Interest Expense and credit Cash for $1,100.
D) debit Interest Payable and credit Cash for $1,100.
Correct Answer:
Verified
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