ABC borrows money from a local bank on July 1, 2016. The loan is for $100,000 and the annual interest rate is 12% with r

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Abc Borrows Money From A Local Bank On July 1 2016 The Loan Is For 100 000 And The Annual Interest Rate Is 12 With R 1 (43.35 KiB) Viewed 34 times

ABC borrows money from a local bank on July 1, 2016. The loan is for $100,000 and the annual interest rate is 12% with repayment of the loan and interest scheduled for June 30, 2017. Assuming that the only entries made prior to June 30, 2017 were the entries on July 1, 2016 to record the origination of the loan and on December 31, 2016 to record the accrual of interest on the loan, what is the entry necessary for ABC to record the repayment of the loan and interest on June 30, 2017. Debit Loan Payable $100,000 Debit Interest Expense $12,000 Credit Cash $112.000 Debit Loan Payable $100,000 $12,000 Debit Interest Expense Credit Cash $112,000 $100,000 O Debit Loan Payable Debit Interest Expense $6,000 Debit interest Payable $6,000 Credit Cash $112.000 Debit Loan Payable 5112,000 Credit Cash $112,000