Question

8. Allen took out a three-year, 8%, $100,000 loan on March 31, 2021. Interest is due upon maturity of the loan. How much interest will Allen pay in 2021.

Answer 1

Debit Interest Expense and credit Interest Payable for $6,000.

Step-by-step explanation:

$100,000 × 8% × 9/12 = $6,000.