Suppose Ladner Environmental Services (LES) borrowed $50,000 on March 1 by signing a note payable to Royal Bank. LES's interest expense for the remainder of its fiscal year (March through May) is $450.
1. Make LES's adjusting entry to accrue interest expense at May 31. Date the entry and include its explanation.
2. Using T-accounts, post to the two accounts affected by the adjustment.