Question

Jackson Bank lends Jabbour Clothing Company ​$125,000 on September 1. Jabbour signs a ​$125,000​, ​6%, six-month note. The journal entry made by Jabbour on December​ 31, its fiscal​ year-end, is

Answer 1

Interest expense_2500

Interest payable_______2500

Step-by-step explanation:

Note 125000

Interest 6%

Six montrh note

Close month 31 decoember

DATE BORROW % Int. Monthly Int.

sep-01 125000 0,50% 625

oct-01 125000 0,50% 625

nov-01 125000 0,50% 625

dec-01 125000 0,50% 625

125000 2,00% 2500