A company borrowed $100,000 at 6% interest on September 1,2009.Assuming no adjusting entries have been made during the year,the entry to record interest accrued on December 31,2009 would include a debit to interest expense and a credit to interest payable for $2,000.

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Interest expense ($2,000) = Amount borrowed ($100,000) F1F1F1S1F1F1F10 Interest rate (6%) F1F1F1S1F1F1F10 Number of months borrowed relative to a year (4 F1F1F1S1F1F1F10 12)

A Company Borrowed $100,000 at 6% Interest on September 1,2009