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

question 28

Multiple Choice

A company pays $18,000 in interest on notes,consisting of $12,000 interest that was accrued during the last accounting period and $6,000 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:

• A)debit Interest Expense for $18,000 and credit Cash for $18,000.
• B)debit Cash for $18,000 and credit Interest Payable for $18,000.
• C)debit Interest Expense for $6,000,debit Interest Payable $12,000 and credit Cash for $18,000.
• D)debit Interest Payable for $12,000,debit Accrued Interest $6,000 and credit Cash for $18,000.

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