Answer Happy

25) 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.
Group of answer choices
a- Debit Loan
Payable $100,000
Debit Interest Expense
$12,000
Credit
Cash
$112,000
b- Debit Loan
Payable $100,000
Debit Interest Expense
$12,000
Credit
Cash
$112,000
c- Debit Loan
Payable $100,000
Debit Interest
Expense $6,000
Debit Interest
Payable $6,000
Credit
Cash
$112,000
d- Debit Loan
Payable $112,000
Credit Cash

$112,000