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On November 1, 2019, The Lannister Lion Fine Dining Company issued $200,000 of 10-year, 6% bonds, with interest payable annually on November 1. Assuming the
On November 1, 2019, The Lannister Lion Fine Dining Company issued $200,000 of 10-year, 6% bonds, with interest payable annually on November 1. Assuming the appropriate December 31, 2019 year-end adjusting entry was made, which of the following would be included in Lannisters November 1, 2020 journal entry for the annual interest payment?
Credit to Interest Payable for $12,000. | ||
Debit to Interest Expense for $12,000. | ||
Credit to Cash for $12,000. | ||
Debit to Interest Payable for $10,000 |
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