A Company Pays $9,000 in Interest on Notes Consisting of $6,000

question 65

Multiple Choice

A company pays $9,000 in interest on notes consisting of $6,000 of interest that was accrued during the last accounting period and $3,000 of interest that accumulated during this accounting period that has not yet been accrued on the books.The journal entry for the interest payment should:

• A)debit Interest Expense $9,000 and credit Cash $9,000.
• B)debit Cash $9,000 and credit Interest Payable $9,000.
• C)debit Interest Expense $3,000,debit Interest Payable $6,000,and credit Cash $9,000.
• D)debit Interest Payable $6,000,debit Accrued Interest $3,000,and credit Cash $9,000.

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Definitions:

Oxygenated Blood

Blood that is rich in oxygen, typically found in the arterial system, except for the pulmonary arteries, which carry deoxygenated blood to the lungs.

Arteries

Blood vessels that carry oxygen-rich blood away from the heart to all parts of the body.

Oxygenated Blood

Blood that has been enriched with oxygen in the lungs and is transported via arteries from the heart to supply the tissues of the body.

Arterioles

Small branches of arteries that lead to capillaries, playing a crucial role in regulating blood pressure and flow.