# S3-9. (Learning Objective 3: Adjust the accounts for interest expense) Trent Restaurantborrowed \$110,000 on October 1 by signing a note payable to Hometown Bank. The interestexpense for each month is \$825. The loan agreement requires Trent to pay interest on January 2for October, November, and December.1. Make Trent’s adjusting entry to accrue monthly interest expense at October 31, atNovember 30, and at December 31. Date each entry and include its explanation.2. Post all three entries to the Interest Payable account. You do not need to calculate thebalance of the account at the end of each month.3. Record the payment of three months’ interest on January 2.

Question

S3-9. (Learning Objective 3: Adjust the accounts for interest expense) Trent Restaurant
borrowed \$110,000 on October 1 by signing a note payable to Hometown Bank. The interest
expense for each month is \$825. The loan agreement requires Trent to pay interest on January 2
for October, November, and December.
1. Make Trent’s adjusting entry to accrue monthly interest expense at October 31, at
November 30, and at December 31. Date each entry and include its explanation.
2. Post all three entries to the Interest Payable account. You do not need to calculate the
balance of the account at the end of each month.
3. Record the payment of three months’ interest on January 2.