Making adjusting entry to accrue interest expense


Response to the following problem:

Suppose Gay Gillen borrowed $50,000 on October 1 by signing a note payable to Community One Bank. Gillen's interest expense for each month is $300.

1. Make Gillen's adjusting entry to accrue interest expense at December 31. Date the entry and include its explanation.

2. Post to the two accounts affected by the adjustment.

 

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Accounting Basics: Making adjusting entry to accrue interest expense
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