During 2015, Sunrise Foods, Inc. records an interest expense of $5,000
Question # 00267848
Posted By:
Updated on: 05/03/2016 11:00 AM Due on: 06/02/2016
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
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Rating:
/5
Solution: During 2015, Sunrise Foods, Inc. records an interest expense of $5,000