Given the following information from an amortization table for December 31,2017,prepare the journal entry to record the accrual of interest at year end if the fiscal year of the company ends on September 30,assuming the last interest payment occurred on 6/30/2017.

Question

Quizplus · Accepted Answer

Based on the given information, the last interest payment occurred on 6/30/2017, which means that interest has accrued for the period from 7/1/2017 to 12/31/2017. Therefore, the journal entry to record the accrual of interest at year-end would be to debit the interest expense account and credit the interest payable account. This is reflected in option A.

Given the Following Information from an Amortization Table for December