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

question 102

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 the current accounting period but has not yet been accrued on the books.The journal entry for the interest payment should include a:

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

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Definitions:

Endodermis

A layer of cells in the root of a plant that acts as a barrier to the free movement of substances between the soil and the vascular tissue.

Agricultural Soil

Soil that is used or suitable for farming activities, characterized by its fertility and ability to support crop production.

Loam

A rich soil blend, containing a balance of silt, sand, and clay, along with organic matter.

Epiphytes

Plants that grow on other plants for physical support but do not derive nutrients from them, obtaining moisture and nutrients from the air, rain, and sometimes from debris accumulating around them.