Aajusting Entries ror interest The following note transactions occurred during t

Question

Aajusting Entries ror interest The following note transactions occurred during the year for Towell Company: Nov. 25 Towell issued a 60-day, nine percent note payable for $8,000 to Hyatt Company for merchandise. Dec. 7 Towell signed a 120-day, $15,000 note at the bank at ten percent. Dec. 22 Towell gave Barr, Inc, a $12,000, eight percent, 60-day note in payment of account. adjust the interest accounts at December 31. Use 360 days for calculations and round to the nearest dollar. General Journal Date Description Debit Credit Dec.31 To accrue interest expense for note issued on Nov. 25. Dec.31 To accrue interest expense for note signed on Dec. 7 Dec.31

Explanation / Answer

Adjusting entry :

Note : Second question post individually again for answer

Date accounts & explanation debit credit Dec 31 Interest expense (8000*9%*36/360) 72     Interest payable 72 (To record adjusting entry) Dec 31 Interest expense (15000*10%*24/360) 100     Interest payable 100 (To record adjusting entry) Dec 31 Interest expense (12000*8%*9/360) 24     Interest payable 24 (To record adjusting entry)

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.