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25 October, 11:52

g The company took out a loan from the bank (this transaction was already recorded). It was a 90-day, 9% note for $7,200 taken out on December 1, 2014. Record the accrued interest expense for the month of December.

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  1. 25 October, 15:44
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    1. Dr Interest expense 54

    Cr Accrued interest 54

    (To record interest expense)

    Explanation:

    Interest expense = 7200 * 9% = $648 * 1 / 12 = $54 for the m/o dec
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