Question
On October 1, 2016, we borrowed $120,000 on a note payable that carries a 6% interest rate with semiannual interest payments required on March 31,
On October 1, 2016, we borrowed $120,000 on a note payable that carries a 6% interest rate with semiannual interest payments required on March 31, 2017 and September 30, 2017. The correct journal entry for interest expense/payable is listed below; please explain how to calculate the interest / how to get $1800 as the expense.
Interest Expense $1,800
Interest Payable $1,800
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Accounting Principles
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
14th Edition
1119707110, 978-1119707110
