Adjusting Entries for Interest The following note transactions occurred during t

Question

Adjusting Entries for Interest The following note transactions occurred during the year for Towell Company: Nov. 25 Towell issued a 90-day, 99% note payable for $13.000 to Hyatt Company for merchandise. Dec. 7 Towell signed a 120-day, 10% note at the bank for $17,000. Dec. 22 Towell gave Barr, Inc., a 60-day, 1 096, $17,000 note for payment of account. Prepare the general journal entries necessary to adjust the interest accounts at December 31. Use 360 days for calculations and round to the nearest dollar. General Journal Date Description Debit Credit 0 0 Dec.31 Interest Expense 0 Interest Payable To accrue interest expense for note issued on Nov.

Explanation / Answer

Adjusting entry :

Adjusting entry :

Adjusting entry :

Date accounts & explanation debit credit Dec 31 Interest expense (13000*9%*36/360) 117      Interest payable 117 (TO accure interest expense for note on nov 25)

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