[aahhmm]

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

[aahhmm]

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

[ArcSine]

The interest accrues at $10 per month, but from the given information, there should be a half-month's accrual for November. So as of Dec 31 the JE should record a month and a half ($15) rather than just one month ($10).

And for future reference, don't double-post a single question. Good luck with your studies.

[aahhmm]

Thanks a lot

[aahhmm]

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$

[morgaine300]

PLEASE do not post your same question in a bunch of different threads. It's very confusing to those of us who are trying to help you. I'm glad I chose to look at all your posts before answering, cause it's no fun spending a bunch of time answering someone just to discover there's the same question elsewhere that someone else has answered. And you've also re-done the problem but then started a new thread - it's the same problem - post on the same thread.

I've converged all your threads together to rid us of the confusion.

If it's $10 per month, why would you double December which is only one month? And how can there be $15 in the payable if you've put $25 into it?

[aahhmm]

Sorry for posted the same question in the different bunch but I still confused , the transactions were like this :
(adjusting) 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 5$
Cr interest payable 5$
Then they gave you the balance in the trial balance of December
DR interest expenses15$
CR interest payable 15$
And then they require from you to do this transaction:
In 31 December The note payable
Has a stated interest rate of 6%, and the principal and interest are due on November 16
I think the entry will be
DR interest expenses 5$
CR interest payable 5$
The balance will be in adjusted trial balance is
Interest expenses 20$
Interest payable 20$
And I apologised for taking too long

[morgaine300]

I'm pretty confused over what you're trying to do there. I'm not sure where the $15 is coming from going into December when only $5 has been put in there. The $5 you were doing for November is correct.

It's December that's the problem. It's $10 per month as established several posts ago. December is a full month, and a month is $10. No reason to double it to $20 and no reason to halve it to $5. It appears that you're trying to do more than is necessary. It's $10 per month and December is one month. November is not relevant to December, so ignore that.