Maturity date = July 1 + 8 months = March 1
Total interest incured on maturity = [tex]200,000(0.0625)\left( \frac{8}{12} \right)=\$8,333.33[/tex]
Number of months as at December 31 = 6 months
Therefore, the amount of interest expense that the company would record in a year-end adjustment on december 31 is given by:
[tex]Interest \ expense= \frac{8,333.33}{8} \times6=\$6,250[/tex]
