Fleet Tutoring Services borrowed $12,000 and signed a one-year note payable on December 1, 2012. The note bears interest at a rate of 5% per year. Fleet will repay the principal amount of $12,000 plus one year's interest of $600 on November 30 of the following year. Fleet accrues interest expense every month. What adjusting entry is needed on December 31?

Question

Fleet Tutoring Services borrowed $12,000 and signed a one-year note payable on December 1, 2012. The note bears interest at a rate of 5% per year. Fleet will repay the principal amount of $12,000 plus one year's interest of $600 on November 30 of the following year. Fleet accrues interest expense every month. What adjusting entry is needed on December 31?
Fleet Tutoring Services borrowed $12,000 and signed a one-year note payable on December 1, 2012. The note bears interest at a rate of 5% per year. Fleet will repay the principal amount of $12,000 plus one year's interest of $600 on November 30 of the following year. Fleet accrues interest expense every month. What adjusting entry is needed on December 31?

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The Answer of Fleet Tutoring Services borrowed $12,000 and signed a one-year note payable on December 1, 2012. The note bears interest at a rate of 5% per year. Fleet will repay the principal amount of $12,000 plus one year's interest of $600 on November 30 of the following year. Fleet accrues interest expense every month. What adjusting entry is needed on December 31?

Fleet Tutoring Services Borrowed $12,000 and Signed a One-Year Note