889018 15. a 120-day, 10% note payable, with a face value of $11.00. entry for t

Question

889018 15. a 120-day, 10% note payable, with a face value of $11.00. entry for the accrued interest at December 31 on the note? (Use 360 days a yeor On November 1, Alan Company signed What nteret spnse, 5360 credit tnterest Payvabei 2350 O Debit interest payable. $130; credit interest expense, $130. O No adjusting entry is required. O Debit Interest Expense, $195; credit Interest Payable, $195. O Debit Interest Payable, s390, credit Interest Expense, $390. 16. A company borrowed $21,000 by signing a 90-day promissory note at 12%. The total intere the maturity date is: (Use 360 days a year.) P R T-10rseesr O $52.50 O$315.00 O $630.00 O $945.00 O $2,520.00

Explanation / Answer

15. Interest accrued= $11700*60/360*10%=$195

The journal entry shall be:

Interest expense A/C Dr     $195

To Interest Payable A/C               $195

Correct option is the fourth one.

16. The total interest due on maturity:

=$21000*90/360*12%=$630

Correct option is the third one.

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