Question

Interest has accrued at 8% on the mortgage notes payable since July 1, 2019. The next six-month interest payment at 9% on the bonds is due on March 1, 2020. The discount on bonds payable has not been amortized for any part of 2019; the bonds are dated March 1, 2013, and mature March 1, 2023. Use straight line amortization for bonds discount and premiums.

Mortgage notes payable balance on 1-1-2019 is 43000 on 30-11-2019 is 113000

bonds payable (issued March 1 2013) 1-1 balance is 257000 on 30-11-2019 is 275000

additional information discount on bonds payable on 30-11 is 4400

prepare adjusting entry as on 31-12-2019

Answer 1

Answer
	Explanation :
	Interest on 8% mortgage notes: $70,000* 8%*6/12 months = $2800
	Interest on 9% bonds: $43,000*9%*4/12 months = $1290
	$2800+$1290 = $4090
Journal entry
No.	Account Titles and Explanations	Debit	Credit
1	Interest expense	$         4,090
	To,Accrued interest Payable		$         4,090
	(To record interest expenses.)
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answered by: anonymous