Question

Brief Exercise 3-12 Record the adjusting entry for interest payable (L03-3) Midshipmen Company borrows $18.500 from Falcan Company on July 1, 2021. Midshipmen repays the amount barrowed and pays Interest of 12% 7%/month) on June 30, 2022 Required: 1.82. Record the necessary entries in the Joumal Entry Worksheet below. 3. Calculate the 2021 year-end adjusted balances of interest Payable and interest Expense (assuming the balance of Interest Payable at the beginning of the year is $0) Complete this question by entering your answers in the tabs below. Required 1 and 2 Required 3 Record the necessary entries in the Journal Entry Worksheet below. (If no entry is required for a particular transaction/event, select "No Joumal Entry Required in the first account field.) View transaction Journal entry worksheet < 1 > Record the borrowing for Midshipmen on July 1, 2021. Note: Enter debit balanced Dale General Journal Debit Credit July 01, 2021 Record entry Clear entry View general Journal Required Required 3 >

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Answer 1

Working : Requirement (182) Date July 01, 2021 Credit General Journal Cash Notes Payable Debit $ 18,500 $ 18,500 (To Record the Borrowing) December 31,2021 Interest Expense Interest Payable $ 1,110 18500*1%*6 $ 1,110 (To Record Accrued Interest) Requirement (3) Interest Payable Interest Expense Ending Balance $ $ 1,110 1,110 18500*1%*6 18500*1%*6 Note : Do Comment For Any Further Assistance