5. Debit. Interest Payable - 5200,000; Credit Unity Expense - 51,200,000 c. Credit. Interest Payable - $150,000; Debit. Utility Expense - $1,200,000 d. Credit. Interest Payable - $200,000; Debit. Utility Expense - $1,150,000 Question 5 Wot yet 7swered erked out of Flag tion The accounting cycle for Canada Mining Hills Limited is from January 1 to December 31 At the start of April, the company signed an agreement to purchase a new factory for $10,000,000. The company paid 50% in cash and the remainder by taking out a 10 year loan. Annual interest expense on the loan is $200,000. Interest will be paid in cash on March 31 each year of the loan period. On May 15 Canada Mining Hills Limited was paid $8,000,000 in advance by Backward Limited to construct a large oil platform Canada Mining Hills Limited was paid $6,000,000 in advance by Drilling Limited to construct a solar windmill. On October 1 Canada Mining Hills Limited purchased a new piece of equipment from Clarke Investment Limited. Canada Mining Hills Limited paid $12,000,000 in cash for the equipment. At the end of the accounting cycle the CFO of Canada Mining Hills Limited had completed 40% of the construction of the oil platform and 25% of the solar windmill. Annual depreciation on the new equipment is $1,200,000 and $500,000 for the new factory. Required: At the end of the accounting cycle Canada Mining Hills Limited would have made adjustment entries to 'interest Expense! and 'Depreciation Expense' of the following amounts? Select one: a. Debit. Interest Expense - $200,000; Debit. Depreciation Expense - $1,700,000 b. Debit. Interest Expense - $200,000; Debit. Depreciation Expense - $675,000 c. Debit. Interest Expense - $150,000; Debit. Depreciation Expense - $1,700,000 d. Debit. Interest Expense - $150,000; Debit. Depreciation Expense - $675,000 The accounting cycle for Paris Project Limited is from January 1 to December 31. At the start of July, the company signed an agreement to purchase a new warehouse for $45,000,000. The company paid 50% in cash MacBook Air