Question

Midshipmen Company borrows $15,000 from Falcon Company on July 1, 2015. Midshipmen repays the amount borrowed and pays interest of 12% (1%/month) on June 30, 2016.
(1) Record the borrowing for Midshipmen on July 1, 2015.
(2) Record the adjusting entry for Midshipmen on December 31, 2015.
(3) Calculate the 2015 year-end adjusted balances of Interest Payable and Interest Expense (assuming the balance of Interest Payable at the beginning of the year is $0).



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  • CreatedJuly 15, 2014
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