Answer:
Calculate the 2021 year-end adjusted balances of Interest Payable and Interest Expense.
July 1 2021
Db Cash ________________________ 17000
Cr Borrow payable______________________________ 17000
December 31 2021
Db Interest expense______________ 1020
Cr Interest payable_______________________________ 1020
June 30 2022
Db Interest expense______________ 1020
Cr Interest payable_______________________________ 1020
Explanation:
Borrow Loan__%I__ Int.___Amount
July 1 2021 to December 31 2021 17000 6% 1020__18020
July 1 2021
1
Db Cash ________________________ 17000
Cr Borrow payable______________________________ 17000
December 31 2021
Db Interest expense______________ 1020
Cr Interest payable_______________________________ 1020
June 30 2022
Db Interest expense______________ 1020
Cr Interest payable_______________________________ 1020