[PlsHelpMe]

I am so confused, I am trying to prepare a worksheet in financial accounting and I am lost..
I have completed all of it except one that is this...

"The long term note payable (24,000) bears interest at 1% per month. The unadjusted Interest Expense account equals the amount paid for the first 11 months of the 2005 fiscal year ($2,640). The $240 accrued interest for June has not yet been paid or recorded. (Note that the company is required to make a $5,000 payment toward the note payable during the 2006 fiscal year.)"

How do I come to the answer? It is make my totals interfere with my balance sheet.

Thanks!

[CaptainForest]

Dr. Interest Expense 240
Cr. Interest Payable 240