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Marina CMI [18]
4 years ago
8

During the fourth quarter ended December​ 31, Year​ 1, Lighting Fixtures Inc.​ (LFI) had average outstanding revolving bank loan

s of​ $1.2 million. Assume that the quarterly interest charges associated with these loans was​ $7,500. If LFI makes the interest payment to the banks on January​ 15, Year​ 2, what is the journal entry​ (if any) made by the company on December 31 to reflect the​ above?
Business
2 answers:
IrinaK [193]4 years ago
8 0

Answer:

December 31, Year 1              DR.        Cr.

Accrued Interest Expense  $7,500

Interest Payable                                 $7,500

Explanation:

On December 31 Year 1 Interest was accrued and It was recorded by the Lighting Fixtures Inc.​ (LFI) but its outstanding now. Lighting Fixtures Inc.​ (LFI) paid the interest on January 15, at this time a payment entry of a payable interest was be made. Expense was charged on December 31 of year 1.

almond37 [142]4 years ago
3 0

Answer:

I think it is 7,500

Explanation:

Hope this helps!!!!

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Hi!

That's a funny one xD


The correct answer is A
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The other options are not good because if you just tell them you are bus now, you will lost the client. They will think you are not care for them. You can't tell them to make an appointment with your assistant because they want to talk with you,not the assistance. OMG always keeping the door closed is the worst xD. It shows that you don't welcomed people so you wouldn't have enough client.


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