Question

u) On December 31, Dizzy Controls Inc. issued a check for $3,700 payable to its bank for the interest incurred for using the proceeds of the loan during December. DATE ACCOUNT NAMES CREDIT DEBIT v) On December 31, Dizzy Controls Inc. paid $12,500 cash to its stockholders as distributions of a portion of its profits earned in December. DATE ACCOUNT NAMES CREDIT DEBIT

Answer 1

u)

Journal

Dec. 31	Interest expense	3,700
	Cash		3,700
	(To record payment of interest expense)

v)

Journal

Dec. 31	Dividends	12,500
	Cash		12,500
	(To record payment of dividends)

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