23.
HERENSTRAAT has bought a building on January, 2, 2015 which has been financed
with a € 600,000 mortgage payable, 8% interest, 20 years duration. Equal annual payments of
€ 61,111 are made, starting from December, 31, 2015. A part of the annual payments is used
for redemption of the mortgage.
Which ledger account has been correctly adjusted in the accounts of HERENSTRAAT
following the payment on December, 31, 2016?
A
Interest Expense
€ 48,000
Debit
B
Interest payable
€ 61,111
Debit
C
Mortgage Payable
€ 14,160
Debit
D
None of the answers above are correct.