Question

Brief Exercise 10-4 Fischer Company borrowed $47,280 from National bank on August 1 for three months; 5% interest is payable the first of each month, starting September 1. Fischer's year end is September 30 and the company records adjusting entries only at that time. Your answer is correct. Prepare a journal entry to record the receipt of the bank loan on August 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit August 1 Cash 47280 Bank Loan Payable 47280 SHOW LIST OF ACCOUNTS LINK TO TEXT Your answer is partially correct. Try again. Prepare journal entries to record: (1) the payment of interest on September 1, (2) the accrual of interest on September 30, (3) the payment of interest on October 1, and (4) the payment of interest on November 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit September 1 Tinterest Expense Cash T September 30 interest Expense Interest Payable October 1 Interest Payable

Answer 1

		Debit	Credit
September 1	Interest expense	197		=47280*5%/12
	Cash		197
September 30	Interest expense	197
	Interest payable		197
October 1	Interest payable	197
	Cash		197
November 1	Interest expense	197
	Cash		197
		Debit	Credit
November 1	Bank loan payable	47280
	Cash		47280