jenkins rentals company faced the following situations. view the situations requirement 1. journalize the…
jenkins rentals company faced the following situations. view the situations requirement 1. journalize the adjusting entry needed at december 31, 2023, for each situation. consider each fact separately. (record debits first, then credits. exclude explanations from any journal entries.) a. the business has interest expense of $3,100 that it must pay early in january 2024. accounts debit credit a.
Answer
Explanation:
Step1: Identify the accounts involved
The interest expense has been incurred but not yet paid, so we need to record it. The expense account 'Interest Expense' is debited to recognize the expense, and the liability account 'Interest Payable' is credited to show the amount owed.
Step2: Record the adjusting - entry amounts
The amount of interest expense is $3,100. So we debit Interest Expense for $3,100 and credit Interest Payable for $3,100.
Answer:
| Accounts | Debit | Credit |
|---|---|---|
| Interest Expense | $3,100 | |
| Interest Payable | $3,100 |