on may 1, the Garrett Corporation wanted to purchase a $480,000 piece of equipment, but Garnett was only able to furnish

Brief Exercise 8-40 (Algorithmic) Accrued Interest On May 1, the Garnett Corporation wanted to purchase a $480,000 plece of equipment, but Garnett was only able to furnish $134,400 of its own cash to purchase the equipment. Garnett borrowed the remainder of the $480,000 from the People's National Bank on a 3-year, 10% note Required: If the company keeps its records on a calendar year, what adjusting entry should Garnett make on December 317 Round amounts to the nearest dollar Dec. 31 Interest Expense Interest Payable (Record accrued interest expense) 2,304 X 2,304 X Feedback Check My Work Expenses must be matched to the period it helped generate revenues. Interest = Principal * Annual Interest Rate x Fraction of One Year