Solved

On September 1, 2012, Daylight Donuts Signed a $100,000, 9

Question 16

Multiple Choice

On September 1, 2012, Daylight Donuts signed a $100,000, 9%, six-month note payable with the amount borrowed plus accrued interest due six months later on March 1, 2013. Daylight Donuts records the appropriate adjusting entry for the note on December 31, 2012. In recording the payment of the note plus accrued interest at maturity on March 1, 2013, Daylight Donuts would


A) Debit Interest Expense, $3,000.
B) Debit Interest Expense, $1,500.
C) Debit Interest Payable, $1,500.
D) Debit Interest Expense, $4,500.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents