Question

A company pays $9,000 in interest on notes consisting of $6,000 of interest that was accrued during the last accounting period and $3,000 of interest that accumulated during the current accounting period but has not yet been accrued on the books. The journal entry for the interest payment should include a:

debit to Interest Expense for $9,000 and a credit to Cash for $9,000.

debit to Cash for $9,000 and a credit to Interest Payable for $9,000.

debit to Interest Expense for $3,000, a debit to Interest Payable for $6,000, and a credit to Cash for $9,000.

debit to Interest Payable for $6,000, a debit to Accrued Interest for $3,000, and a credit to Cash for $9,000.