On May 31, 2016, Harmony, Co., purchased $13,000 of inventory with a one-year, 1

Question

On May 31, 2016, Harmony, Co., purchased $13,000 of inventory with a one-year, 12 percent note payable. Journalize the following for the company 1. Accrual of interest expense on December 31, 2016 2. Payment of the note plus interest on May 31, 2017 1. Joumalize the accrual of interest expense on December 31, 2016. (Record debits first, then credits. Exclude explanations from any journal entries.) Journal Entry Date Accounts Debit Credit Dec 31 Record debits fist,then credits. Exdlude explanations from any journal entries) 2. Journalize the payment of the note plus interest on May 31, 2017. Journal Entry Accounts DebitCredit Date Choose from any list or enter any number in the input helds and then continue to the next question. to search

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer and please give thumbs up   Statementshowing Computations Date Paticulars Dr cr Dec 31'2016 Interest Expense DR                  910.00 To Interest Payable                  910.00 (13000*12%*7/12) May 31'2017 Note Payable Dr            14,560.00 To Cash            13,000.00 To Interest Expense = 13000*12%*5/12                  650.00 To interest payable                  910.00

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