Answer:
June 2019
Interest Expense $ 2,531.25 (debit)
Bank $ 2,531.25 (credit)
September 2019
Interest Expense $ 2,531.25 (debit)
Bank $ 2,531.25 (credit)
December 2019
Interest Expense $ 2,531.25 (debit)
Bank $ 2,531.25 (credit)
March 2020
Interest Expense $ 2,531.25 (debit)
Bank $ 2,531.25 (credit)
Explanation:
For each Month, Recognise an Expense - Interest and Also de-recognise the Asset - Cash as interest is being paid.
Interest Expense Calculation = 3/12×$225,000×4.5%
= $ 2,531.25
The answer is the first one. Demand alludes to the amount of an item or administration is wanted by purchasers. The amount demand is the measure of an item people will purchase at a specific value; the connection amongst cost and amount requested is known as the requested relationship. The law of demand expresses that, if every other factor stays measure up to, the higher the cost of a decent, the fewer individuals will request that great. As such, the higher the value, the lower the amount requested. The measure of a decent that purchasers buy at a higher cost is less in light of the fact that as the cost of a decent goes up, so does the open door cost of purchasing that great.
