What adjusting journal entry is made when an entity wants to ...

[schs14]

What adjusting journal entry is made when an entity wants to prepare financial statements, owes interest on a borrowing during the year, but hasn't paid either the loan or the interest?
 
  a. debit prepaid interest; and credit interest expense
  b. debit interest payable; and credit interest expense
  c. debit interest expense; and credit interest payable
  d. debit interest payable; and credit loans payable

Question 2

Accumulated Depreciation-Delivery Equipment is an example of a(n) ___________________ _ account.
 Fill in the blank(s) with correct word

[wtf444]

Answer to Question 1

c

Answer to Question 2

contra-asset

[schs14]

Thanks for the timely response, appreciate it

[dreamfighter72]

Gracias!