Answer:
the journal entry will be:
interest expense 2,835 debit
interest payable 2,835 credit
--to record accrued interest --
Explanation:
April 1st,2018 42,000 promissory note
<u>accrued interest</u> from April 1st to December 31th (9-months)
principal x rate x time
we moth express rate and time on the same metric.
because the rate is annual; time should be expressed at portion of year 9/12
42,000 x 9% (9/12) = 2,835
the journal entry will be:
interest expense 2,835 debit
interest payable 2,835 credit
