trent restaurant borrowed $110,000 on october 1 by signing a note payable to hometown bank. the interest…

trent restaurant borrowed $110,000 on october 1 by signing a note payable to hometown bank. the interest expense for each month is $825. the loan agreement requires trent to pay interest on january 2 for october, november and december. read the requirements. 1. make trents adjusting entry to accrue monthly interest expense at october 31, at november 30, and at december 31. date each entry and include its explanation. (record debits first, then credits. select the explanation on the last line of the journal - entry table.) make the adjusting entry to accrue monthly interest expense for october. date accounts and explanation debit credit

trent restaurant borrowed $110,000 on october 1 by signing a note payable to hometown bank. the interest expense for each month is $825. the loan agreement requires trent to pay interest on january 2 for october, november and december. read the requirements. 1. make trents adjusting entry to accrue monthly interest expense at october 31, at november 30, and at december 31. date each entry and include its explanation. (record debits first, then credits. select the explanation on the last line of the journal - entry table.) make the adjusting entry to accrue monthly interest expense for october. date accounts and explanation debit credit

Answer

Explanation:

Step1: Determine the accounts involved

The interest expense needs to be accrued, so we debit Interest Expense. The liability for the unpaid interest is created, so we credit Interest Payable.

Step2: Record the October 31 entry

The monthly interest expense is $825.

Date Accounts and Explanation Debit Credit
Oct 31 Interest Expense 825
Interest Payable 825
To accrue monthly interest expense for October

Step3: Record the November 30 entry

The process is the same as for October.

Date Accounts and Explanation Debit Credit
Nov 31 Interest Expense 825
Interest Payable 825
To accrue monthly interest expense for November

Step4: Record the December 31 entry

Date Accounts and Explanation Debit Credit
Dec 31 Interest Expense 825
Interest Payable 825
To accrue monthly interest expense for December

Answer:

Date Accounts and Explanation Debit Credit
Oct 31 Interest Expense 825
Interest Payable 825
To accrue monthly interest expense for October
Nov 31 Interest Expense 825
Interest Payable 825
To accrue monthly interest expense for November
Dec 31 Interest Expense 825
Interest Payable 825
To accrue monthly interest expense for December