Q 11SE-2 - Horngren'S Financial And Managerial Accounting

Question

Resort Travel borrowed \(33,000 on September 1, 2018, by signing a one-year note payable to State One Bank. Resort’s interest expense on the note payable for the remainder of the fiscal year (September through November) is \)355. Requirements 1. Record the adjusting entry to accrue interest expense at November 30, 2018. 2. Post the adjusting entry to the T-accounts of the two accounts affected by the adjustment.

Step-by-Step Solution

Answer

T-accounts are as follows:

Interest Payable
		355	Nov.30
		355	Bal.

 

Interest Expense
Nov.30	355
Bal.	355

Step-by-Step Solution Step 1: Explanation on T-account

T-account represents the account balance in T-style format, which is used to post the journal entries.

Step 2: Explanation on T-account

The ending balance of interest payable is $355, and interest expense equals $355.