how to record this adjusting entry
charge interest of 6% on the note payable extended on
November 16.The loan plus interest is to be repaid in 24 months. (Assume that half a month
of interest accrued during November.)
Note payable 2,000$
Dr interest expenses 10$
Cr interest payable 10$
(2000X 6%/12)
is this transaction is correct or I have to record a half of the interest or divide by 24 months instead of 12 months
What is the adjusting entry?
charge interest of 6% on the note payable extended on
November 16.The loan plus interest is to be repaid in 24 months. (Assume that half a month
of interest accrued during November.)
Note payable 2,000$
Dr interest expenses 10$
Cr interest payable 10$
(2000X 6%/12)
is this transaction is correct or I have to record a half of the interest or divide by 24 months instead of 12 months
how to record this adjusting entry
charge interest of 6% on the note payable extended on
November 16.The loan plus interest is to be repaid in 24 months. (Assume that half a month
of interest accrued during November.)
Note payable 2,000$
Interest is calculated at 6% p.a. on the principal of $2,000.
$2,000 x 6% x 0.5/12 = $5.00
Dr interest expenses 5$
Cr interest payable 5$
in 31 December The note payable
has a stated interest rate of 6%, and the principal and interest are due on November 16
the transaction will be
Dr interest expenses 20$
Cr interest payable 20$
is this transaction is right, because the balabce of the interest in December will be 15$