Marmidan Mold Shop Inc. designs and builds molds for the automotive and aircraft industries. The account balances in the companys general ledger on January 1, 2020 (first day of the new annual fiscal year) were as follows (all account balances are in their normal position)

Interest payable 4,200

9% Notes payable ($10,000 due June 30, 2021,

One years interest at 9% was paid on the notes payable at July 1, 2020.

Interest for six months at 9% per year on the notes payable is unpaid and unrecorded at December 31, 2020..

journal entry

balance due June 30, 2022) 61,500