Assuming Company X has a December 31 year end.How would you list the adjusting entries needed for
Fantastic news! We've Found the answer you've been seeking!
Question:
Assuming Company X has a December 31 year end.How would you list the adjusting entries needed for the accrual of interest on the following transactions relating to notes payable?
Sept. 1 Purchased inventory costing $48,000 by signing an 8-month, 6% note payable.
Nov. 1 Purchased inventory costing $30,000 by signing a 1-year, 7% note payable.
For ease of computation lets say that Company X calculates interest expense based on the number of months outstanding, rather than the number of days.
Related Book For
Financial and Managerial Accounting the basis for business decisions
ISBN: 978-0078111044
16th edition
Authors: Jan Williams, Susan Haka, Mark Bettner, Joseph Carcello
Posted Date: