Jacksonjackson bank lends jabbourjabbour clothing company $125 comma 000125,000 on september 1. jabbourjabbour signs a $125 comma 000125,000, 6%, six-month note. the journal entry made by jabbourjabbour on december 31, its fiscal year-end, is

Explanation:

The journal entry is shown below:

Interest expense A/c Dr $3,000

           To Interest payable A/c $3,000

(Being interest is recorded)

The computation of the interest expense is shown below:

= Principal × rate of interest × number of months ÷ total number of months in a year

= $125,000 × 6% × (4 months ÷ 12 months)

= $2,500

The four-month is calculated from the September 1 to December 31

answer; /// i believe the answer is (insider trading)

c is the correct answer.