Reference no: EM131812655

The Perrine Company obtained a $20,000 note payable on August 1, 20X9, that is due in 5 years. Interest, at an annual rate of 12%, will be paid once a year on July 31. The accountant made the appropriate journal entry on August 1, 20X9. No other journal entry has been made. What journal entry is necessary as of December 31, 20X9? A) Debit Interest Expense and credit Notes Payable for $1,000 B) Debit Interest Expense and credit Notes Payable for $2, 400 C) Debit Interest Expense and credit Interest Payable for $1,000 D) Debit Interest Expense and credit Interest Payable for $2, 400 E) Debit Interest Expense and credit Interest Receivable for $2, 400 10) Given the following transactions, what is the balance in the cash account? 1. The owner started the company by investing $8, 900 cash. 2. The company paid $3,000 for 6 months' rent in advance. 3. The company acquired $2, 400 in merchandise inventory with two-thirds of the purchase on account 4. The company sold merchandise inventory costing $1, 500 for $3, 100 on account.