A company pays $18,000 in interest on notes,consisting of $12,000 interest that accrued during the last accounting period and $6,000 of interest accumulated during this accounting period but not previously accrued on the books.The journal entry for the interest payment should:

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The company is paying $18,000 in interest, which includes $12,000 of interest that had been previously accrued on the books and $6,000 of interest that was not previously accrued. Therefore, the journal entry should be to debit interest expense for the $6,000 of newly accrued interest, debit interest payable for the $12,000 of accrued interest, and credit cash for the total amount of $18,000. Option C is the only choice that correctly reflects this transaction.

A Company Pays $18,000 in Interest on Notes,consisting of $12,000