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    sandy_1615 Posts: 3, Reputation: 1
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    #1

    Feb 16, 2009, 05:07 PM
    Adjusting Entries
    How would I do the adjusting entry for the following information : On December 12, $50,000 was borrowed on a short term note payable. The interest rate carried on the note is 9%. Record the accrued interest to December 31. Use the 360-day banker's year to complete your calculations.
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    #2

    Feb 16, 2009, 05:15 PM
    Insufficient information
    Insufficient information
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    ROLCAM Posts: 1,420, Reputation: 23
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    #3

    Feb 16, 2009, 05:19 PM

    (18/360)(9/100)(50,000) = XXXX interest.

    Debit Interest XXXX
    Credit Amount Payable XXXX

    Being 18 days interest at 9% per annum
    on $50,000.
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