Norbert Corporation borrowed $24,000 on December 1, 2011, by issuing a two month, 8 percent note payable to Service One Credit Union. The entire amount of the loan, plus interest, is due February 1, 2012.
| a. |
Prepare the necessary adjusting entry for interest expense on December 31, 2011. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| Dec. 31 | (Click to select)Interest expenseInterest payableAccounts receivableShort term investmentSalaries expenseCashNotes payableRent expense | ||
| (Click to select)Short term investmentCashNotes payableAccounts receivableSalaries expenseRent expenseInterest payableInterest expense | |||
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| b. |
Record the repayment of the loan plus interest on February 1, 2012. (Omit the “$” sign in your response.) |
| Date | General Journal | Debit | Credit |
| Feb. 1 | (Click to select)Interest payableOffice suppliesInterest expenseShort term investmentCashRent expenseAccounts receivableNotes payable | ||
| (Click to select)CashInterest payableShort term investmentOffice suppliesNotes payableInterest expenseRent expenseAccounts receivable | |||
| (Click to select)Interest payableInterest expenseShort term investmentRent expenseNotes payableOffice suppliesCashAccounts receivable | |||
| (Click to select)Short term investmentInterest payableCashRent expenseOffice suppliesNotes payableInterest expenseAccounts receivable | |||
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