Rise and Shine Ice Cream prepares annual financial statements and has a December 31 year-end. As of

Question:

Rise and Shine Ice Cream prepares annual and has a December 31 year-end. As of March 1, 2017, Rise and Shine Ice Cream took out a bank loan for $12,000 with an interest rate of 8%. Interest is incurred on a monthly basis and needs to be paid on December 31, 2018.
a. What is the formula to calculate interest expense?
b. How many months of interest expense have been incurred at December 31, 2017?
c. Inordertopreparetheannualfinancialstatements,recordtheadjustingjournalentryon December 31, 2017.
Jan. 1, 2017 Dec. 31, 2017 Dec. 31, 2018 Sept. May Sept. Nov. Mar. Jan. Nov. Mar. July May July Jan. Aprг. Dec. Feb. Fe

Jan. 1, 2017 Dec. 31, 2017 Dec. 31, 2018 Sept. May Sept. Nov. Mar. Jan. Nov. Mar. July May July Jan. Aprг. Dec. Feb. Fe

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...

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