Question
Steve has a note payable that is due in seven months. He borrowed $80,000 with a 6% interest rate on September 1, 2018. The note
Steve has a note payable that is due in seven months. He borrowed $80,000 with a 6% interest rate on September 1, 2018. The note will be due on June 1, 2019. He already recorded the journal entry on September 1, 2018, he needs your help in calculating the interest accrual on December 31, 2018 and the full entry needed to pay off the loan on June 1, 2019.
Write out in words the formula needed to calculate interest expense.
Write out your formula and your calculation of the interest expense that we need to record on December 31, 2018.
Write out the journal entry:
Showing your work and formula, calculate and record the journal entry needed on June 1, 2019 to fully pay off the loan.
Write out the journal entry:
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Oil And Gas Accounting
Authors: Steven M. Bragg
2nd Edition
1642210668, 9781642210668
