Question

Question 1 Not complete Marked out of 18.00 P Flag question Adjusting Entries for Interest The following note transactions occurred during the year for Towne Company: Nov. 25 Towne issued a 90-day, nine percent note payable for $8,000 to Hyatt Company for merchandise Dec 7 Towne signed a 120-day, $30,000 note at the bank at ten percent. Dec. 22 Towne gave Barr, Inc., a $12,000, four percent, 60-day note in payment of account. Prepare the general journal entries necessary to adjust the interest accounts at December 31. Use 360 days for calculations and round to the nearest dollar. General Journal Description Debit Credit Date Dec.31 To accrue interest expense for note issued on Nov. 25 Dec 31 To accrue interest expense for note signed on Dec. 7 Dec.31 To accrue interest expense for note on Dec. 22. Check

Answer 1

Credit & Debit & 120 Journal entries Date Particulars Decal. Interest Expense Alc- - Dr TO Accrued Interestale (to accrue Interest Expense for note issued on Novas] 120 200 Dec 31 Interest Expense dlc... Dr 200 TO accrued mterst dlc t to accrue mtererterp for note hyred on Dec fl Dr . 12 Dec 31. Interest Expenkalc-... - to accrued mderst Ale T TO Mtent Exp for note on becand mteret of Nords: 8000x 364 $9:12 = 120$ miterst of Dec 7 : 30,000 X 10%.x24360> 200$ Iterst of Decaa: 19,000x99. X Yra 12.