Assuming No Adjusting Journal Entries Have Been Made,the Journal Entry

question 45

Multiple Choice

Assuming no adjusting journal entries have been made,the journal entry to record the cash interest payment on the due date for bonds issued at their par value results in which of the following?

• A)An increase in expenses and a decrease in liabilities.
• B)An increase in expenses and a decrease in assets.
• C)A decrease in both liabilities and stockholders' equity.
• D)A decrease in both assets and liabilities.

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