CCC10 CONTINUING COOKIE CHRONICLE
(a)
$2,000 X 9% X 2.5/12 = $38
(b)
Total interest expense and interest payable $2,000 X 9% X 9.5/12 = $143
Entry required $143 – $38 accrued to January 31 = $105
Aug. 31
Interest Expense ($2,000 X 9% X 7/12) ………..
Interest Payable …………………………………..
(c)
Sept. 15
Notes Payable ……………………………………………
Interest Payable ($38 + $105) ……………………..
Interest Expense ($2,000 X 9% X 0.5/12) ……..
Cash ($2,000 + ($2,000 X 9% X 10/12)) …..