Question 3
Correct
Mark 2.00 out of 2.00
Analyzing and Computing Financial Statement Effects of Loan Interest
Huddart Company gave a creditor a 90-day, 8% note payable for $5,400 on December 16.
a. Prepare the journal entry to record the year-end December 31 accounting adjustment Huddart must make.
● Note: Carry all decimals in calculations; round the final answer to the nearest dollar.
Date
Dec. 31
Account
Debit
Interest expense
Interest payable
Credit
18
0 
0
18 
To record year-end adjustment.
b. Post the journal entry to its respective T-accounts.
●Note: Enter your answers, in transaction order, in the first open field of the appropriate column in each account.
Cash
Interest expense
0 
0 
Interest payable
0 
18 
0 
Note payable
18 
0 
0 