QUESTION 4 On September 1, Kennedy Company loaned $100,000, at 12% annual interest, to a customer. Interest and principal will be collected when the loan matures one year from the issue date. Assuming adjustments are only made at year end, what is the adjusting entry for accruing interest that Kennedy would need to make on December 31, the calendar year-end? A. Debit interest Expense, $12,000; credit interest Payable, $12,000, B. Debit interest Expense, $4,000, credit Interest Payable, $4,000. Debit Interest Receivable, $12,000; Credit Cash, $12,000. D. Debit interest Receivable, $4,000; credit Interest Revenue, $4,000. E Debit Cash, $4,000, credit Interest Revenue, $4,000. QUESTION 5 The Retained earnings account has a credit balance of $37,000 before closing entries are made. Total revenues for the period are $55.200, total expenses are $39,800, and dividends are $9,000. What is the correct closing entry for the expense accounts? A. Debit Income Summary $39,800, credit Expense accounts $39,800 B. Debit Expense accounts 537,000; credit Retained earnings $37,000 c. Credit Expense accounts $39,800; debit Retained earnings $39,800 D. Debit Expense accounts $39,800, credit Income Summary $39,800 E. Debit Income Summary $39,800, credit Retained earnings $39,800. The Retained earnings account has a credit balance of $37.000 before dosing entries are made. Total revenues for the period are $55.200, total expenses are $39,800, and dividends are $9,000. What is the correct closing entry for the expense accounts? A Debit Income Summary $39,800; Credit Expense accounts $39.800. B. Debit Expense accounts $37.000; credit Retained earnings 537,000. Credit Expense accounts $39,800, debit Retained earnings $39.800. D. Debit Expense accounts $39.800; credit Income Summary 539,800 E. Debit income Summary $39,800, credit Retained earnings $39,800