Homework Answers
| Date | General Journal | Debit | Credit |
| Jan. 30 | Note payable | 120,000 | |
| Interest expense | 887 | ||
| Interest payable | 444 | ||
| Cash | 121,331 |
Interest payable on December 31, 2019 = 120,000 x 9% x 15/365
= $444
Interest expense to be recorded on Jan. 30 = 120,000 x 9% x 30/365
= $887
Note : if it is assumed that the year has 360 days, then interest amount will slightly differ.
Kindly comment if you need further assistance. Thanks‼!
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