Question

on november 1, 2018, new morning bakery signed a 200000, 6% six month note payable with the amount borrowed plus accrued interest due six months later on may 1, 2019. new morning bakery records the appropriate adjusting entry for the note on december 31, 2018. what amount of cash will be needed to pay bavk the note payable plus any accrued interesdt on may 1, 2019

Answer 1

Debit Interest Expense and credit Interest Payable, $2,000.

Step-by-step explanation:

General Journal Debit Credit

Interest expense[($200,000 × 6%) × 2/12] $2,000

Interest payable $2,000