Posted: May 10th, 2021

Martin & associates borrowed $5,000 on april 1, 2010 at 8% interest

Martin & Associates borrowed $5,000 on April 1, 2010 at 8% interest with both principal and interest due on March 31, 2011.

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

 

Question 1: Which of the following journal entries should the firm use to accrue interest at the end of each month?

A. Dr. Interest payable, Cr. Cash

B. Dr. Interest payable, Cr. Interest receivable

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

C. Dr. Interest expense, Cr. Interest payable

D. Dr. Interest payable, Cr. Interest expense

 

Question 2: How much should be in the firm’s interest payable account at December 31, 2010?

A. $300

B. $400

C. $0

D. $333

 

Question 3: Which of the following journal entries should the firm use to record the payment of interest on March 31, 2011?

A. Dr. Interest expense, Dr. Interest payable, Cr. Cash

B. Dr. Interest payable, Cr. Interest receivable

C. Dr. Interest expense, Cr. Interest payable

D. Dr. Interest payable, Cr. Interest expense

Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00
Open chat
1
Order through WhatsApp!
professionalsessays.com
Hello!
You Can Now Place your Order through WhatsApp

Order your essay today and save 30% with the discount code 2022DISCOUNT