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On November 1, 20X1, Little Corp. purchased land with a cost of $100,000 by issuing a 12%, 6-month note payable. The note plus interest is
On November 1, 20X1, Little Corp. purchased land with a cost of $100,000 by issuing a 12%, 6-month note payable. The note plus interest is due on April 30, 20X2. Little has a calendar year-end and rounds all interest calculations to the nearest whole month. Required: In the journal below, record the accrued interest on this note on December 31 as well as the repayment of the note and interest on April 30, 20X2. Do not include decimals or cents in the numerical response. Date Account Debit Credit 12/31/X1 Answer 1 Question 26 Interest Expense Answer 2 Question 26 2,000 Answer 3 Question 26 Interest Payable Answer 4 Question 26 2,000 4/30/X2 Answer 5 Question 26 Notes Payable Answer 6 Question 26 100,000 Answer 7 Question 26 Interest Payable Answer 8 Question 26 2,000 Answer 9 Question 26 Interest Expense Answer 10 Question 26 4,000 Answer 11 Question 26 Cash Answer 12 Question 26 106,000
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