On September 30, 2014, its fiscal year end, NS Services recorded an adjusting entry for $2,000 of

Question:

On September 30, 2014, its fiscal year end, NS Services recorded an adjusting entry for $2,000 of interest it owes at year end and will include as part of its payment on October 31, 2014. On October 31, 2014, the company paid interest in the amount of $3,000. Assuming NS Services uses reversing entries, prepare the journal entries for these interest transactions.