Principal x Annual interest rate x Fraction of year = Interest $2,000 x 12% x 15/360 = $10 Knowledge Check 01 On December 16, 2019, Carboy, Inc., borrows $120,000 cash from Third National Bank at 9 percent annual interest The note is due in 45 days. At December 31, 2019, Carboy records any unpaid interest with an adjusting entry on January 30, 2020, Carboy pays the principal and interest owed on the bank note. Prepare the January 30 entry by Carboy for the payment (maturity) of the note plus interest by selecting the account names from the drop-down menus and entering the dollar amounts in the debitor credit columns View transaction list View journal entry worksheet Debit General Journal No Credit Date Jan. 30 1 870 480 Interest expense Interest payable Notes payable Cash 120,000 121,350 MacBook Air