To purchase equipment and supplies, ProPaint, Inc. borrowed $30,000 on August 1 by signing a note payable

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To purchase equipment and supplies, ProPaint, Inc. borrowed $30,000 on August 1 by signing a note payable to First Nations Bank. Interest expense for ProPaint, Inc. is $200 per month. Journalize an adjusting entry to accrue interest expense at December 31, assuming no other adjusting entries have been made for the year. Use T-accounts to post to the two accounts affected by the adjustment.

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Financial Accounting

ISBN: 978-0132889711

1st Canadian Edition

Authors: Jeffrey Waybright, Liang Hsuan Chen, Rhonda Pyper

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