On June 1,Edison Company borrowed $24,000 on a one-year Note Payable with an interest rate of 10% per year.It will repay the principal and interest at the end of the one-year period.The company makes accrual adjustments at the end of each month.The company should record interest expense of $2,400 on June 30.

Question

Quizplus · Accepted Answer

Interest Expense = ($24,000 × 10%)/ 12 = $200

On June 1,Edison Company Borrowed $24,000 on a One-Year Note