Multiple Choice
On 1 May 2019, Bric-A-Brac purchased a building for $400 000, paying $100 000 as a deposit and giving the seller a 10% mortgage for the balance. The monthly repayment was $3000. The entry to record the payment on 1 June 2019 is:
A) DR Interest expense $3000; CR Bank $3000
B) DR Mortgage payable $3000; CR Bank $3000
C) DR Interest expense $2500; DR Mortgage payable $500; CR Bank $3000
D) DR Interest expense $2500; DR Bank $500; CR Mortgage payable $3000
Correct Answer:
Verified
Correct Answer:
Verified
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