On August 1, Roddick borrowed $30,000 from a local bank on a 15-year mortgage. The annual...
| On August 1, Roddick borrowed $30,000 from a local bank on a 15-year mortgage. The annual interest rate is 8%. |
What would be the adjusted journal entry for this?
Homework Answers
The adjusting entry would be
| Interest expense | 800 | |
| Interest payable | 800 | |
| (to record interest expense) | ||
| (30,000*8%*4/12) |
Note :- I have taken Dec 31 as year end. Your answer will change if the year end is different. Comment if you face any issues.
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