Thompson Travel borrowed $ 68,000 on October 1, 2014, by signing a one- year note payable to Metro One Bank. Thompson’s interest expense on the note payable for the remainder of the fiscal year (October through December) is $ 884.
1. Record the adjusting entry to accrue interest expense at December 31, 2014.
2. Post the adjusting entry to the T-accounts of the two accounts affected by the adjustment.