On December 31, 2012, Edgmont, Co., purchased $10,000 of inventory on a one-year, 10% note payable. Edgmont uses a perpetual inventory system.

Requirements

1. Journalize the company’s accrual of interest expense on June 30, 2013, its fiscal year-end.

2. Journalize the company’s payment of the note plus interest on December 31, 2013.