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On February 1 of Year 1, the company received $100,000 cash from a one-year bank loan. The interest rate on the loan is 8%. No
On February 1 of Year 1, the company received $100,000 cash from a one-year bank loan. The interest rate on the loan is 8%. No payments are due on the loan until January 31 of Year 2. Which ONE of the following would be included in the journal entry necessary on January 31 of Year 2 to record the full payment of principal and interest on this loan? Note: An appropriate adjusting entry was made on December 31 of Year 1. O DEBIT to Interest Expense for $7,333 O DEBIT to Interest Expense for $667 O CREDIT to Interest Expense for $8,000 O CREDIT to Interest Expense for $667 O DEBIT to Interest Expense for $8,000 CREDIT to Interest Expense for $7,333
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