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On October 1st, a company borrowed $60,000 from Eighth National Bank on a 1-year, 7% note. If the company's fiscal year ends on December 31st, a year-end adjusting entry is required to increase:
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On October 1st, a company borrowed $60,000 from Eighth National Bank on a 1-year, 7% note. If the company's fiscal year ends on December 31st, a year-end adjusting entry is required to increase:

User Andrei Tita
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1 Answer

5 votes

Answer:

Interest payable $1,050

Step-by-step explanation:

Based on the information given F the company's fiscal year ends on December 31st, Hillsmith should make a year-end adjusting entry to increase: INTEREST PAYABLE $1,050

Interest payable $1,050

(7%*60,000*3/12)

(October 1st December 31st=3 months)

User Juwel
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