Unquiet Hands, Inc. borrowed $30,000 on October 1, 2019 at 6% interest with both principal and interest due on September 30, 2020. Which of the following journal entries should the firm use to accrue interest at the end of each month?
A.
| Dr. | Interest payable |
| Cr. | Interest expense |
B.
| Dr. | Interest receivable |
| Cr. | Interest payable |
C.
| Dr. | Interest payable |
| Cr. | Cash |
D.
| Dr. | Interest expense |
| Cr. | Interest payable |
Answer: D
Business
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