Log in

View Full Version : Adjustments in accounting


Maria Zurmati
Mar 19, 2009, 10:05 AM
What is for example the interest rate for a note 20,000, 10 %, 60- days. The Accrued interest day is Sep. 18 and the adjustment should be done on Sep. 30?

pready
Mar 20, 2009, 04:57 PM
The journal entry will be:
Debit Interest Expense for the amount of interest accrued interest

Credit Interest Payable for the amount

Interest = Principal X Rate X Time