Question

Unadjusted Trial Balance shows a Notes Payable credit of $10000. What is the adjusting entries on the Worksheet for 6% interest note payable made on Jan. 31, 2017 and is due February 1, 2019.

Unadjusted Trial Balances Adjusting Entries

Debit Credit Debit Credit

Notes Payable		10,000.00				10,000.00
Interest Payable						-

Answer 1

notes payable will be same and it will be paid at maturity date

a years. on The Notes will be due in At end of ist year ite Dec 31st 2014 Interest Expense Interest payable Debit credit 550 $550 ( 10000 X 6-4. x Ilmonths 1 m MT4) $600 on Dec 31st 2018 Interest Expense .. Interest payable [1000 x64 - 600]. $600 >> These interest payable will be closed on the date of maturity along with notes payable. as Interest adjustment entries will be made at the end of each year.