Question

Adjusting Entries for Interest The following note transactions occurred during the year for Zuber Company: Nov. 25 Zuber issued a 90-day, 10% note payable for $60,000 to Porter Company for merchandise. Dec 10 Zuber signed a 120-day, 10% note at the bank for $72,000. Dec. 23 Zuber gave Dale, Inc, a 60 day, 12% 590,000 note for payment of account. Prepare the journal entries necessary to adjust the interest accounts at December 31. Use 360 days for calculations and round to the nearest dollar General Journal Date Description Debit Credit Dec 31 To accrue interest expense for note issued on Nov. Dec To accrue interest expense for note signed on Dec 10. Dec31 To accrue interest expense for note on Dec. 23.

Answer 1

		Debit	Credit
Dec 31	Interest expene	600		=60000*10%*36/360
	Interest payable		600
	To accrue interest expense for note issued on Nov 25
Dec 31	Interest expene	420		=72000*10%*21/360
	Interest payable		420
	To accrue interest expense for note signed on Dec 10
Dec 31	Interest expene	240		=90000*12%*8/360
	Interest payable		240
	To accrue interest expense for note on Dec 23