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sandy_1615
Feb 16, 2009, 04:07 PM
How would i do the adjusting entry for the following information : On December 12, $50,000 was borrowed on a short term note payable. The interest rate carried on the note is 9%. Record the accrued interest to December 31. Use the 360-day banker's year to complete your calculations.
ROLCAM
Feb 16, 2009, 04:15 PM
insufficient information
ROLCAM
Feb 16, 2009, 04:19 PM
(18/360)(9/100)(50,000) = XXXX interest.

Debit Interest XXXX
Credit Amount Payable XXXX

Being 18 days interest at 9% per annum
on $50,000.