S10-1 Accounting for a note payable [10 min]

On December 31, 2012, Edgmont purchased $10,000 of inventory on a one-year, 10% note payable. Edgmont uses a perpetual inventory system. Requirements

1. Journalize the companys accrual of interest expense on June 30, 2013, its fiscal year-end.

2. Journalize the companys payment of the note plus interest on December 31, 2013.