Stanley has a $2,000 note payable that was taken out on December 31, 2020. When it matures
Fantastic news! We've Found the answer you've been seeking!
Question:
- Stanley has a $2,000 note payable that was taken out on December 31, 2020. When it matures at the end of 2022, Stanley must pay back the $2,000 in principle as well as interest at an annual rate of 9%. The total interest over the 2 years will be $2,000 * 0.09 * 2 or $360.
- Record the adjusting journal entry at January 31, 2021 to recognize interest on the note payable for the month of January
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
Posted Date: