Please let me know if I am on the right track I think my dollar amount could be wrong. My question was, On September 1, the painting service borrows $50,000 from the bank on a 4-month, 6% note.
I need to make a journal entry for December 31 before financial statements are prepared.
My answer is
Debit - Interest expense 1,000
Credit - Interest payable 1,000
Thanks

yes,
the interest expense is computed as follows:
$50,000 * 6% * 4/12 = Interest Expense. This is a debit to Interest Expense
PRT=I Principle * Rate * Time = Interest
If the payment has not been made then the credit will be to Interest Payable.
If the payment has been made then the credit will be to Cash