I'm having troubke with this problem:

Brothers Mike and Tim began operations of their tool and die shop on January 1, 2011. The annual reporting period ends December 31.

Transaction during 2012:
a) Borrowed $12,000 cash on a five year, 10 percent note payable, date March 1, 2012.
What would my journal entry for the interest on the note payable?

I have tried 12,000 x .10 % / by 10 months, 9 months the whole year
I've triedall kinds of different numbers and combos but the answer is always wrong.

What am I not getting?

Thank you for your help

See my other answer on this subject to darkstar

see my other answer on this subject to darkstar

Please be more specific, there is NO darkstar, there are several darkstar23, darkstarx, etc... can you send me a link, a date a subject line, something more I can go on. Thank you.

The correct formula is:
Amount of loan times annual rate times number of months divided by 12months(for a partial year).

So: $12,000 * 10% * 10/12 = Interest Expense

So, that would be $1,000 - correct... I'm not positve but it seems I tried that number already. ~ I'll enter it again though

Thank you for your help

If your amount is not correct you are probably missing some additional information in your problem.

So, that would be $1,000 - correct...I'm not positve but it seems I tried that number already. ~ I'll enter it again though

Thank you for your help

OMG, that was it! ~ I'm so thankful ~ I guess I didn't try $1,000

Maybe you can help me with a closing entry

Retained Earnings:

If I have a dr of $22,000 and a cr of $17,000
What would my closing entry be?

The balance should zero, right?

What are your Debit and Credits amounts for? I assume your Income Summary account.

You close out Revenues and Expenses to the Income Summary account, then you close out the Income Summary account to Retained Earnings. Finally you close out dividends to Retained Earnings.

Your journal entries will be:
Debit each Revenue account for the amount in the account
Credit Income Summary for the same amount as your debits

Debit Income Summary for the same amount as the total of your credits
Credit each expense account for the account balance

Your Debit amount in Income Summary should be more than your credit amount, with the difference known as net income. If the credits is more than your debits you have a net loss.

Now you take the difference in the debits and credits and add this amount to the account with the least amount to get both accounts to the same amount. This journal entry is:
Debit or Credit Income Summary for the amount
Credit or Debit Retained Eanrings.

So using your amounts, you have a debit amount of $22,000 and a credit amount of $17,000 so your journal entry will be for a credit to your income summary account for $5,000 which will cancel out your debits and credits. The journal entry will be:
Debit Retained Earnings for $5,000 (this will reduce your account)
Credit Income Summary for $5,000 (which brings your account to zero balance)

To close out your dividends, the journal entry will be:
Debit Retained Earnings for the amount of dividends during the acocunting period
Credit Dividends for the amount of dividends during the accounting period

What are your Debit and Credits amounts for? I assume your Income Summary account.

You close out Revenues and Expenses to the Income Summary account, then you close out the Income Summary account to Retained Earnings. Finally you close out dividends to Retained Earnings.

Your journal entries will be:
Debit each Revenue account for the amount in the account
Credit Income Summary for the same amount as your debits

Debit Income Summary for the same amount as the total of your credits
Credit each expense account for the account balance

Your Debit amount in Income Summary should be more than your credit amount, with the difference known as net income. If the credits is more than your debits you have a net loss.

Now you take the difference in the debits and credits and add this amount to the account with the least amount to get both accounts to the same amount. This journal entry is:
Debit or Credit Income Summary for the amount
Credit or Debit Retained Eanrings.

So using your amounts, you have a debit amount of $22,000 and a credit amount of $17,000 so your journal entry will be for a credit to your income summary account for $5,000 which will cancel out your debits and credits. The journal entry will be:
Debit Retained Earnings for $5,000 (this will reduce your account)
Credit Income Summary for $5,000 (which brings your account to zero balance)

To close out your dividends, the journal entry will be:
Debit Retained Earnings for the amount of dividends during the acocunting period
Credit Dividends for the amount of dividends during the accounting period

Actually, the $17,000 was the beginning balance... this is a Recodrding Transactions (Including Adjusting and Closing Entries) C0mprehensive Problem
This particular one is on a T-Account

The closing process starts after the adjusted trial balance is done and you have prepared your financial statements.

First you will have the Trial balance, next you do your adjusting entries, next is the Adjusted Trial Balance, next is your Income Statement and Balance Sheet, next is your closing entries and finally the post-closing Balance Sheet.

The purpose of the closing process is to close out your temporary accounts (Income Statement accounts) to your permanent accounts (Balance Sheet accounts) so your Income Statement accounts will be reset to zero for the next accounting period.

The closing process starts after the adjusted trial balance is done and you have prepared your financial statements.

first you will have the Trial balance, next you do your adjusting entries, next is the Adjusted Trial Balance, next is your Income Statement and Balance Sheet, next is your closing entries and finally the post-closing Balance Sheet.

The purpose of the closing process is to close out your temporary accounts (Income Statement accounts) to your permanent accounts (Balance Sheet accounts) so your Income Statement accounts will be reset to zero for the next accounting period.

I know, I figured out my problem... It turns out to be CE $41,000 Balance $36,000

Thank you for all your help... I really do appreciate it