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Bigwin Inc Had a Loan Outstanding During the Month and at the End

Question 76

Multiple Choice

Bigwin Inc had a loan outstanding during the month and at the end of the month it paid interest expense of $200.How would the transaction be recorded?


A) Dr.Loan payable $200, Cr.Cash $200
B) Dr.Loan payable $200, Cr.Interest expense $200
C) Dr.Interest expense $200, Cr Loan payable $200
D) Dr.Interest expense $200, Cr.Cash $200

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