Question

Thompson Inc. borrowed 199.000 on October 1 by signing ance payable to Neighbourhood One Bank. The rest expense for each month is $330. The loan agreement s Thompson is to pay interest on December 31 1. 2. 3. Make Thompson 's adjusting entry to cou r t expense and interest gyobi Odober 31. November 30 and at December 31 Date each entry and includes explanation Post all three nines to the Payable account. You need to take the balance of the account the end of each month Record the payment of three month interest December 31 Requirement 1. Thompson inesausting entry interes pense and pawbe r , Novr and December 31. Dale cachent and include its espation Record debits fire than

Answer 1

Answer:

1)

Journal Entries - Thompson Inc.
Event	Particulars	Debit	Credit
31-Oct	Interest expense Dr	$330
	To Interest payable		$330
	(To record interest expense accrued)
30-Nov	Interest expense Dr	$330
	To Interest payable		$330
	(To record interest expense accrued)
31-Dec	Interest expense Dr	$330
	To Interest payable		$330
	(To record interest expense accrued)

2.)

Interest Payable
Date	Debit	Date	Credit
		31-Oct	$330
		30-Nov	$330
		31-Dec	$330
		End balance	$990

3.)

Journal Entries - Thompson Inc.
Event	Particulars	Debit	Credit
31-Dec	Interest payable Dr	$990
	To Cash		$990
	(To record interest payments)