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On 1 October 2020 ABCWorld purchased a building for $400 000, paying $150 000 as...

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Accounting

On 1 October 2020 ABCWorld purchased a building for $400 000, paying $150 000 as a deposit and giving the seller a 12% mortgage for the balance. The monthly repayment was $3 000. What is the entry to record the payment on 1 November 2020? Select one: a. Dr interest expense $3 000; Cr bank $3 000 b. Dr interest expense $2 500; Dr mortgage payable $500; Cr bank $3 000 c. Dr mortgage payable $3 000; Cr bank $3 000 d. d. Dr interest expense $1 250; Dr bank $250; Cr mortgage payable $1 500

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