Question
Entries for and Financial Statement Presentation of a Note Griddley Company borrowed $71,000 from the East Salvador Bank on February 1, 2023, on a 3-year,
Entries for and Financial Statement Presentation of a Note Griddley Company borrowed $71,000 from the East Salvador Bank on February 1, 2023, on a 3-year, 7.2% note. Interest is paid annually on January 31.
2. Prepare the adjusting entries made at December 31, 2023 and 2024.
2023 Dec. 31 Interest Expense _____________
Interest Payable _____________
Record Interest Expense
2024 Dec. 31 Interest Expense _____________
Interest Payable _____________
Record Interest Expense
3. Prepare the necessary journal entry to recognize the first interest payment on January 31, 2024.
2024 Jan. 31 Interest Expense ______________
Interest Payable ______________
Cash ______________
Record Interest expense and interest payment
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