Financial Accounting, Adjusted Entries Question

Accounting
Tutor: None Selected Time limit: 1 Day

Crimson Tide borrows $13,500 on September 1, 2015. The principal is due to be repaid in four years. Interest is payable each August 31 at an annual rate of 12%.

what would be the adjustments?

Feb 11th, 2015

                                                                    Crimson Tide

                                                                  General Journal

                                                                                                                           Dr                   Cr

                                                                                                                           $                       $

December31,     Interest Expense                                                                   540

                                    Interest payable                                                                                    540

                      (to record interest accrued on $13,500*12%*4/12)

Feb 11th, 2015

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Feb 11th, 2015
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