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During 2015, Sunrise Foods, Inc. records an interest expense of-(Answered)

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During 2015, Sunrise Foods, Inc. records an interest expense of $5,000, and pays $2,000 of it in cash. How should this accounting transaction be recorded?

  • Debit interest expense $5,000; credit cash $2,000; credit taxes payable $3,000
  • Debit interest expense $5,000; credit cash $2,000; credit interest payable $3,000
  • Debit various debt accounts $5,000; credit cash $2,000; credit interest payable $3,000
  • Debit interest expense $5,000; credit cash $2,000; credit various debt accounts $3,000

 

Paper#9209765 | Written in 27-Jul-2016

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