Review of Interest Expense:

On November $1,$ company takes out a $9$ month, $6\%,$$$100,000$ note payable with the bank.

On December $31,$ company adjusts books.

$\frac{12}{31}$

Interest Expense

CE$-$Dr

$1,000$

Interest Payable

$L+Cr$

$1,000$

Why is the adjusting entry $$1,000?$