Answer:
Debit interest expense and credit interest payable by $150
Explanation:
Given:
Amount borrowed = $30,000
Interest rate = 6%
Maturity = 6 months
If the company prepares monthly financial statements, then interest incurred in the month of November:
Interest expense = [tex]30,000\times0.06\times\frac{1}{12}[/tex]
= $150
Adjusting entry passed:
Date Particulars Debit($) Credit($)
30th Nov Interest expense 150
Interest payable 150
(Being interest expense
accrued)
