Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell

14th Edition

1119707110, 978-1119707110

More Books

Students also viewed these Accounting questions

Question

1. Background knowledge of the subject and

Answered: 1 week ago