Multiple Choice
On January 1,Clive Corporation 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 to record the first semiannual payment would be (round interest calculation to the nearest dollar) to:
A) debit Interest Expense,$735;debit Mortgage Payable,$7,000;credit Cash,$7,735.
B) debit Interest Expense,$7,000;debit Mortgage Payable,$735;credit Cash,$7,735.
C) debit Mortgage Payable,$7,735;credit Cash,$7,735.
D) debit Interest Expense,$7,000;debit Mortgage expense,$735;credit Cash,$7,735.
Correct Answer:
Verified
Correct Answer:
Verified
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