Author Question: What adjusting journal entry is made when an entity wants to prepare financial statements, owes ... (Read 54 times)

schs14 · **on:** Jul 5, 2018

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