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Assume a company pays their employees every Friday for that week's work. The company records part of a week's salary on Wednesday March 31st in
Assume a company pays their employees every Friday for that week's work. The company records part of a week's salary on Wednesday March 31st in order to close the accounting records and prepare financial statements. The payment for the full week of work is made two days later on Friday April 2nd. The journal entry to record payment of the actual week's payment of employees on Friday April 2nd will include a debit to Salaries and Wages Payable. True False On April 1, 2021, Toll Company paid for the $50,000 amount it had borrowed from the Bank on October 1, 2020. Interest of $1,667 had been accrued at December 31, 2020 and was appropriately recorded in the December 31, 2020 financial statements. The total interest of $3,334 was paid on April 1, 2021 along with the full amount borrowed. The journal entry Toll Company would record on April 1, 2021 would include: O A. a debit to interest expense of $3,334. B. a debit to interest expense of $5,000. C. a debit to cash of $53,334. D. a debit to interest payable of $1,667
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