A company borrows $38,000 with 7% interest on october 1, 2018. this amount plus interest is due on september 30, 2019. record the adjusting entry on december 31, 2018. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)

Question

Business

Mila Buck

9 April, 02:18

A company borrows $38,000 with 7% interest on october 1, 2018. this amount plus interest is due on september 30, 2019. record the adjusting entry on december 31, 2018. (if no entry is required for a transaction/event, select "no journal entry required" in the first account field.)

+1

Answers (1)

Know the Answer?

Juan · Answer 1

record the adjusting entry on december 31, 2018.

Interest expense 180

Loan 3.104

Cash 3.284

Explanation:

Date Payment Interest Principal Balance

38.000,00

1 10/31/18 3.284,25 214,86 3.069,39 34.930,61

2 11/30/18 3.284,25 197,50 3.086,75 31.843,86

3 12/31/18 3.284,25 180,05 3.104,20 28.739,66

4 1/31/19 3.284,25 162,50 3.121,75 25.617,91

5 2/28/19 3.284,25 144,85 3.139,40 22.478,51

6 3/31/19 3.284,25 127,10 3.157,15 19.321,36

7 4/30/19 3.284,25 109,25 3.175,00 16.146,36

8 5/31/19 3.284,25 91,29 3.192,96 12.953,40

9 6/30/19 3.284,25 73,24 3.211,01 9.742,39

10 7/31/19 3.284,25 55,08 3.229,17 6.513,22

11 8/31/19 3.284,25 36,83 3.247,42 3.265,80

12 9/30/19 3.284,27 18,47 3.265,80 0,00

Interest expense 180

Loan 3.104

Cash 3.284