Travis County Bank agrees to lend Brickyard Corporation $200,000 on January 1.Brickyard signs a $200,000, 4%, 9-month note.Interest is due at maturity on September 30.The company's fiscal year ends June 30 and adjusting entries are recorded at that time only.
-Use the information above to answer the following question.What adjusting entry should Brickyard make on June 30 before preparing its annual financial statements?
Debit Interest Expense and credit Interest Payable for $4,000

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The Answer of Travis County Bank agrees to lend Brickyard Corporation $200,000 on January 1.Brickyard signs a $200,000, 4%, 9-month note.Interest is due at maturity on September 30.The company's fiscal year ends June 30 and adjusting entries are recorded at that time only.
-Use the information above to answer the following question.What adjusting entry should Brickyard make on June 30 before preparing its annual financial statements?
Debit Interest Expense and credit Interest Payable for $4,000

Travis County Bank Agrees to Lend Brickyard Corporation $200,000 on January