Question
On September 30, 2020, its fiscal year end, TJ Services recorded an adjusting entry for $3,200 of interest it owes at year end and will
On September 30,
2020,
its fiscal year end,
TJ
Services recorded an adjusting entry for
$3,200
of interest it owes at year end and will include as part of its payment on October 31,
2020.
On October 31,
2020,
the company paid interest in the amount of
$3,600.
Assuming
TJ
Services uses reversing entries, prepare the journal entries for these interest transactions.
1.First, record the adjusting entry to accrue the interest expense. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.)
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2. Next, record the reversing entry.
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| Date | Accounts | Debit | Credit | |
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3. Finally, record the interest payment.
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Risk Based Management Led Audit Driven Safety Management Systems
Authors: Ron C. McKinnon
1st Edition
1498767923, 978-1498767927
