Question

Farraro Restaurant borrowed $150,000 on October 1 by signing a note payable to Metro One Bank. The interest expense for each month $500. The loan agreement requires Farraro to pay interest on January 2 for Osbe November and December Read the rements 1. Make Farraro Travels during only to score monthly treat expense at October 31, a. November 30, and at December 31, Duto each entry and include is explanation Record debut first, then credits. Select the explanation on the one of the journey Make the adjusting enty to mohol per for October Journal Entry Account and Explanation Det Credit Od Data

Answer 1

Debit ($) Credit ($) Journal No. Date Account Titles and Explanation 1 31-Oct Interest expense Interest payable (To record the interest expense accrued for october) 600 600 600 30-Nov Interest expense Interest payable (To record the interest expense accrued for november) 600 600 31-Dec Interest expense Interest payable (To record the interest expense accrued for december) 600

2 Dr CR Interest payable Beginning Bal. 31-Oct 30-Nov 31-Dec 600 600 600 Ending Bal. 1,800 1,800 $ 1,800

3 1,800 2-Jan interest payable (600*3) Cash (To record the payment of interest expense for 3 months) 1,800 Please give likes for the work. Thanks & Regards.