Rockford Practice Set 16e - Alternative Set of Instructions, Step 5, part g: I t

Question

Rockford Practice Set 16e - Alternative Set of Instructions, Step 5, part g:

I told I have insufficient information ... not sure what else is needed to add to be answer.

Interest has accrued at 8% on the long-term note payable on July 1, 2018. The next six-month interest payment at 9% on the bonds due on March 1, 2019. The discount on bonds payable has not beem amortized for any part of 2018; the bonds are dated March 1, 2012, and mature March 1, 2022.

Information I know from General Ledger:   

I need to post the adjusting entry into my General Journal.

I think the journal entry is the below but I don't know how to get the numbers

D: Interest Expense

C:Interest Payable

C:Discount on Bond Payable

Notes Payable (Long-Term) Date Explaination Debit Credit Balance Jan 1 Balance 43,000 July 1 Increased Mortgage 70,000 113,000 Nov 30 113,000 Bonds Payable Jan 1 Balance 275,000 Discount on Bonds Payable Jan 1 Balance 6,400

I need to post the adjusting entry into my General Journal.

I think the journal entry is the below but I don't know how to get the numbers

D: Interest Expense

C:Interest Payable

C:Discount on Bond Payable

Explanation / Answer

Interest on 8% mortgage notes: 70000* 8%*6/12 = $2800

Interest on 9% bonds: 43000*9%*4/12 = 1290

General description

debit

credit

Interest expense

4090

     Accrued interest Payable

4090

*4090 = 1290+2800

General description

debit

credit

Interest expense

4090

     Accrued interest Payable

4090

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