In 2013, Micro Marvels signed a $70,000 note payable for 2 years at 5%. Interest is payable monthly on the 10^th of each month. Micro has a December 31 year end, and adjusting entries are prepared at year end only. For calculation purposes assume each month has 30 days, and round amounts to the nearest dollar.
Instructions
Prepare the journal entries to record the following:
a. Payment of interest on December 10
b. The adjusting entry to accrue interest at December 31
c. Payment of interest on January 10

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The Answer of In 2013, Micro Marvels signed a $70,000 note payable for 2 years at 5%. Interest is payable monthly on the 10^th of each month. Micro has a December 31 year end, and adjusting entries are prepared at year end only. For calculation purposes assume each month has 30 days, and round amounts to the nearest dollar. Instructions Prepare the journal entries to record the following: a. Payment of interest on December 10 b. The adjusting entry to accrue interest at December 31 c. Payment of interest on January 10

In 2013, Micro Marvels Signed a $70,000 Note Payable for 2