Question
On January 1, Bestway, Inc. signed a $175,000, 8%, 30-year mortgage that requires semiannual payments of $7,735 on June 30 and December 31 of each
On January 1, Bestway, Inc. signed a $175,000, 8%, 30-year mortgage that requires semiannual payments of $7,735 on June 30 and December 31 of each year. The journal entry for the first semiannual payment (with interest rounded to the nearest dollars) is
,a) debit Mortgage payable, $7,735, Credit Cash, $7,735.
b) Debit interest expense, $7,000, debit Mortgage expense, $735, credit Cash, $7,735.
c) debit interest expense, $735, debit Mortgage payable, $7,000, credit Cash $7,735
d) Debit interest expense, $7,000, debit Mortgage payable, $735, credit cash $7,735.
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