On November 1,2018,Sky Mountain Co.borrowed $200,000 cash on a 1-year,6% note payable that requires Sky Mountain to pay both principal and interest on October 31,2019.Given no prior adjusting entries have been recorded,the adjusting journal entry on December 31,2018,Sky Mountain's year-end,would include a:

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The amount of interest expense that has accrued for the months of November and December 2018 is computed as follows: $200,000 × 0.06 × 2 / 12 = $2,000.Since interest has accrued but has not yet been paid,Interest Expense must be debited and Interest Payable must be credited for $2,000.