Question Help 31 of each yea joumal entry to recond the first semiannual payment

Question

Question Help 31 of each yea joumal entry to recond the first semiannual payment would be (round interest caloulation to the nearest dollar) tor O A debik Interest Expense, $1,323, debi Mortgage Payable, 9,100, crest Cash, $10,423 ?B. debit irterest Exper se·$9,100, debt Mortgage Payable. Si 323, crede Cash, S 10.423. O C. debit Mortgage Payable, $10,423 credt Cash, $10,423 OD dleli interest Expense, $9, 100, debit Mortpage expense, $1,323, cresit Cash $10,423 Click to select your answer Post a question 83 command option ntrol option command

Explanation / Answer

Correct Answer (B) Debit Interest Expenses $ 9100 Debit Mortgage Payable $ 1323, and Credit Cash $ 10423.

Explanation

When we calculate Interest Payable for 6 months then the amount of interest comes to $ 9100.

The Amount actually paid is more than interest so the difference will be treated as payment of Principal amount. The amount paid minus Interest for the period is $ 1323 will reduce the amount of mortgage payable.

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