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LazizaLaziza
Restaurant borrowed
$ 110 comma 000$110,000
on October 1 by signing a note payable to
Neighborhood OneNeighborhood One
Bank. The interest expense for each month is
$ 367$367.
The loan agreement requires
Laziza Laziza
to pay interest on January 2 for? October, November and December.
1. Make LazizaLaziza's adjusting entry to accrue monthly interest expense at October? 31, at November? 30, and at December 31. Date each entry and include its explanation.
2.Post all three entries to the Interest Payable account. You do not need to calculate the balance of the account at the end of each month.
3.Record the payment of three? months' interest on January 2.
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