Thompson Travel borrowed $68,000 on October 1, 2012, by signing a one-year note payable to Metro One Bank. Thompson’s interest expense for the remainder of the fiscal year (October through December) is $884.
Requirements
1. Make the adjusting entry to accrue interest expense at December 31, 2012. Date the entry and include its explanation.
2. Post to the T-accounts of the two accounts affected by the adjustment.