Question

Thompson Travel borrowed $39,000 on September 1,2018, by signing a one- year note payatle to Stret One Bank. Thompsont's inereste Question Hep on the note payable for the emainder of the cal year (September trough November) is 62 1. Record the adjusting entry to accrue interest expense a November 30, 20118 2. Post the adjusting entry to the T-accounts of the two accounts affected by the adjustment Requirement 1. Record the adjusting entry to accrue interest expense at November 30, 2018 (Record debits frst, then credts Select the eplanation on the est line of the joumal entry table Date Accounts and Explanation Debit Credit Nov. 30 Requirement 2. Post the adjusting entry to the T accounts of the twe accounts affected by the aduatment Post the adjustment to the two accounts using a "Nov. 30" posting reflerence, and then calculate and enter the ending balance of the sccourts using a "Balossing elerence Interest Espense Interest Payable

Answer 1

Solution 1:

Date	Accounts and explanation	Debit	Credit
30-11-2018	Interest Expense Dr	$692
	To Interest Payable		$692
	(To record interest expense accrued at November 30, 2018)

Solution 2:

Interest Payable
Bal.	$692	30-Nov, Adjustment	$692
Total	$692	Total	$692

Interest Expense
30-Nov, Adjustment	$692	Bal.	$692
Total	$692	Total	$692