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Problem 1: Kekich & Associates borrowed $6,000 on 1 April 2016 at 8% interest with both principal and interest due on March 31, 2017. Which of the following journal entries should the firm use to record the interest incurred by 30 April 2016?
Group of answer choices
A. Dr Interest expense 40 Cr Cash 40
B. Dr interest receivable 40 Cr Interest payable 40
C. Dr Interest expense 40 Cr Interest payable 40
D. Dr Interest expense 40 Cr Interest receivable 40
Financial Statement Analysis and Preparation
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