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Manhattan Company recorded an adjusting entry to accrue Interest owed of $400 as of December 31, Year 1. When the related note was paid during
Manhattan Company recorded an adjusting entry to accrue Interest owed of $400 as of December 31, Year 1. When the related note was paid during Year 2, the company pald $650 in Interest. Which of the following journal entries correctly records this Year 2 transaction? (Assume that the entry to record the payment of the note itself was recorded In a separate Journal entry) Multiple Choice Interest Expense Cash 650 65 O Interest Expense Interest Payable Cash 25e 4ee 650 O 250 Interest Expense Cash 250 O 658 Interest Expense Cash Interest Payable 400 250
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