Adjusting journal entry—depreciation expense, interest expense

(Learning Objective 2) 5–10 min.

Byblos Company purchased furniture on June 1 for $60,000, paying $20,000 cash and signing a 6%, 2-month note for the remaining balance. The furniture is expected to depreciate by $12,000 each year. Byblos Company prepares monthly financial statements.

Make any adjusting journal entries that should be made on June 30th.

AppendixLO1