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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

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BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

JOURNAL ENTRIES (ACCRUED INTEREST PAYABLE) At the end of the year, the following interest is payable, but not yet paid. Record the adjusting entry in the general journal.

Interest on $5,000, 60-day, 7% note (for 12 days) $11.67
Interest on $2,500, 30-day, 8% note (for 9 days) 5.00
  $16.67

To determine

Prepare adjusting entry to record accrued interest payable.

Explanation

Accrued interest payable:

Accrued interest on payable is interest expense that has been incurred but not paid. The amount of accrued interest is calculated from the notes themselves or from the register of notes payables.

Prepare adjusting entry to record accrued interest payable as follows:

DateAccount titles and ExplanationDebitCredit
December 31Interest expense$16.67 
     Accrued interest payable $16...

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