Answer:
Preparation of the amount of interest expense recorded in the year 2019
Dr Notes Payable 43,000
Dr Interest expense 358.33
($43,000 × 0.1% × 1/12)
Dr Interest Payable 358.33
($43,000 × 0.1% × 1/12)
Cr Cash 43,716.66
Explanation:
Since $ 43,000 2month and 10%note payable were been issued on December 1, 2018 this means we have to record the transaction by Debiting Notes Payable 43,000, Debiting Interest expense 358.33 ($43,000 × 0.1% × 1/12) and Debiting Interest Payable 358.33
($43,000 × 0.1% × 1/12) while we Credit Cash with 43,716.66(43,000+358.33+358.33)
