In order to purchase equipment and supplies, Salem Bike Shop, Inc., borrowed $36,000 on August 1 by

Question:

In order to purchase equipment and supplies, Salem Bike Shop, Inc., borrowed $36,000 on August 1 by signing a note payable to Community One Bank. Interest expense for Salem Bike Shop, Inc., is $300 per month. Journalize an adjusting entry to accrue interest expense at December 31, assuming no other adjusting entries have been made for the year. Post to the two accounts affected by the adjustment.