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-   -   Financial Accounting Question (Hard) (https://www.askmehelpdesk.com/showthread.php?t=629526)

  • Jan 22, 2012, 11:27 AM
    amus95
    Financial Accounting Question (Hard)
    How to make an adjusting entry.

    The source document is a bank memo and it is for the interest accrued and paid for the period. The rate: 0.5% interest per month on all long term debt at month end. Payment: Interest has been withdrawn from our bank account.

    This is a financial accounting assignment and this is one of the adjustments. What do I do?
  • Jan 23, 2012, 07:55 AM
    pready
    Debit Interest Expense for the amount of interest
    Credit Cash for the same amount

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