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    Maria Zurmati's Avatar
    Maria Zurmati Posts: 1, Reputation: 1
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    #1

    Mar 19, 2009, 10:05 AM
    Adjustments in accounting
    What is for example the interest rate for a note 20,000, 10 %, 60- days. The Accrued interest day is Sep. 18 and the adjustment should be done on Sep. 30?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Mar 20, 2009, 04:57 PM

    The journal entry will be:
    Debit Interest Expense for the amount of interest accrued interest

    Credit Interest Payable for the amount

    Interest = Principal X Rate X Time
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