Question

Splish Brothers Music School borrowed $28,200 from the bank signing a 6%, 6-month note on November 1. Principal and interest are payable to the bank on May 1. If the company prepares monthly financial statements, what adjusting entry should the company make at November 30 with regard to the note (round answer to the nearest dollar)

Answer 1

Dr Interest expense $141

($28,200 * 6% * 1 month / 12 months)

Cr Interest payable $141

Step-by-step explanation:

Preparation of the adjusting entry that the company should make at November 30 with regard to the note.

Based on the information given the adjusting entry that the company should make at November 30 with regard to the note will be :

Dr Interest expense $141

($28,200 * 6% * 1 month / 12 months)

Cr Interest payable $141