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Solution Library
Preparing Journal Entries
Question
Prepare journal entries for the following transactions involving notes payable for Homer Company, whose fiscal year ends June 30. Omit explanations.
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June |
20 |
Paid a trade account payable with a 90-day, 9 percent $60,000 note. Interest is in addition to the face value. |
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30 |
Made end-of-year adjusting entry to accrue interest expense for the note. |
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30 |
Made end-of-year closing entry pertaining to interest expense. |
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18 |
Paid amount due on note, plus interest. |
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Total Word Count 41
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