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Please help me with Interest Expense
Brothers Mike and Tim began operations of their tool and die shop on January 1, 2011. The annual reporting period ends December 31.
Transaction during 2012: a) Borrowed $12,000 cash on a five year, 10 percent note payable, date March 1, 2012. What would my journal entry for the interest on the note payable? I have tried 12,000 x .10 % / by 10 months, 9 months the whole year I've tried all kinds of different numbers and combos but the answer is always wrong. What am I not getting? If someone could just help me rationalize through this it would really help. This homework is due tomorrow... and I can't complete the rest of my financial statements without this piece of info. Thank you for your help |
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