11. On April 1, 2019, Wolf Company borrowed $5,000 on an 8% note payable. The maturity date of the note (and payment of all interest) is July 1, 2020. The accounting period ends December 31. Assume no other adjusting entries are made during the year.

Prepare the journal entry for each of the following dates:

1. April 1, 2019.

2. December 31, 2019.

3. July 1, 2020.

Answer:

#	Account	Debit	Credit
A.	April 1, 2019:
	Cash
	Notes payable
B.	December 31, 2019:
	Interest expense
	Interest payable
C.	July 1, 2020:
	Notes Payable
	Interest Payable
	Interest Expense
	Cash