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CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 1 Not yet answered Marked out of 5.00 P Flag question Adjusting Entries for Interest The following note transactions occurred during the year for Zuber Company Nov. 25 Zuber issued a 90-day, 12% note payable for $8,000 to Porter Company for merchandise. Dec. 10 Zuber signed a 120-day, 10% note at the bank for $9,200. Dec. 23 Zuber gave Dale, Inc., a 60-day, 10% $11,000 note for payment of account. Prepare the journal entries necessary to adjust the interest accounts at December 31. Use 360 days for calculations and round to the nearest dollar. General Journal Date Description Debit Credit Dec.31 To accrue interest expense for note issued on Nov. 25 Dec.31 To accrue interest expense for note signed on Dec. 10. Dec.31 To accrue interest expense for note on Dec. 23.

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Solution 1 - Journal Entries

Date Accounts Title and Explanation Debit Credit December 31 Interest Expenses ($8000*12/100*90/360)*37/90 $99 Interest Payable $99 (to accrue interest expenses for note payable on november 25) December 31 Interest Expenses ($9200*10/100*120/360)*21/120 $54 Interest Payable $54 (to accrue interest expenses for note signed on december 10) December 31 Interest Expenses ($11000*10%*60/360)*8/60) $24 Interest Payable $24 (to accrue interest expenses for note signed on december 23)

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