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Chapter 3: Q 11SE-2 (page 159)

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.

Short Answer

Expert verified

T-accounts are as follows:

Interest Payable

355

Nov.30

355

Bal.

Interest Expense

Nov.30

355

Bal.

355

Step by step solution

01

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

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

02

Explanation on T-account

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

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