Answer:
C. $ 76,000
Explanation:
a) Accounting Entry of Cash Paid for Interest
Debit: Interest expense $ 70,000
Credit: Cash $ 70,000
b) Accounting entry of decrease in Accrued Interest Payable
Debit: Interest Payable $ 17,000
Credit: Interest Expense $ 17,000
C) Accounting Entry of Decrease in Prepaid Interest
Debit: Interest Expense $ 23,000
Credit: Prepaid Interest $ 23,000
If interest expenses of above mentioned 3 accounting entries are accumulated then answer will be as follows;
Interest Expense: $70,000-$17,000+$23,000= $ 76,000
