Sunny Travel borrowed ($68,000) on October 1, by signing a one-year, 4% notes payable to City Bank.

Question:

Sunny Travel borrowed $$68,000$ on October 1, by signing a one-year, 4% notes payable to City Bank.

Requirements

1. Calculate the amount of interest expense to accrue at December 31. Round to the nearest dollar.

2. Record the adjusting entry to accrue interest expense at December 31.

3. Post the adjusting entry to the T-accounts of the two accounts affected by the adjustment.

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Related Book For book-img-for-question

Horngrens Accounting The Financial Chapters

ISBN: 9780137884858

14th Edition

Authors: Brenda Mattison, Tracie Miller-Nobles

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Question Posted: Apr 06, 2024 01:00 AM

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Sunny Travel borrowed ($68,000) on October 1, by signing a one-year, 4% notes payable to City Bank.

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Horngrens Accounting The Financial Chapters

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