Hello people,

Is there somebody who can help me to explain this question:

Question 4 (14 P)

a) The 2007 trial balance of Gonzalez Co., we find the following
excerpt:

Long-term debt 50.000
Current portion of long-term debt 50.000

This note payable was signed at May 31, 2007. The interest is 14
percent per year with interest tot be paid at the end of each
semester. Give the journal entries with respect to this loan at 31/12/2007

Solution: (accoring to my answer-sheet)
Interest expense 1.166,66
@<hidden> Interest payable 1.166,66


thanks in advance