Indicate the Account(s) to Be Debited and Credited to Record

question 13

Short Answer

Indicate the account(s) to be debited and credited to record the following transactions.
-Accrued interest on a note payable.
Debit ________ Credit ________
A)Cash
B) Notes receivable
C)Accounts receivable
D) Interest receivable
E)Notes payable
F) Accounts payable
G)Interest payable
H) Discount on notes payable
I) Interest expense
J) Interest income
K) Sales

• A)Cash
• B) Notes receivable
• C)Accounts receivable
• D) Interest receivable
• E)Notes payable
• F) Accounts payable
• G)Interest payable
• H) Discount on notes payable
• I) Interest expense
• J) Interest income
• K) Sales

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Definitions:

Capacity

Maximum output of the operation of an organization.

Residual Income

A measure of net income that remains after subtracting a charge for the capital cost involved in generating that income.

Weighted Average Cost of Capital

A financial metric that calculates a firm's cost of capital, weighted by the proportion of equity and debt financing.