Far Away Inc. borrowed $130,000 on October 1 by signing a note payable to Community Bank. The interest expense for each month is $542. The loan agreement requires Far Away Inc. to pay interest on December 31. 1. Make Far Away Inc.'s adjusting entry to accrue interest expense and interest payable at October 31, at November 30, and at December 31. Date each entry and include its explanation. 2. Post all three entries to the Interest Payable account. 3. Record the payment of three months' interest at December 31. Requirement 1. Make Far Away Inc.'s adjusting entry to accrue interest expense and interest payable at October 31, at November 30, and at December 31. Date each entry and include its explanation. (Record debits first, then

Far Away Inc. borrowed $130,000 on October 1 by signing a note payable to Community Bank. The interest expense for each month is $542. The loan agreement requires Far Away Inc. to pay interest on December 31. 1. Make Far Away Inc.'s adjusting entry to accrue interest expense and interest payable at October 31, at November 30, and at December 31. Date each entry and include its explanation. 2. Post all three entries to the Interest Payable account. 3. Record the payment of three months' interest at December 31. Requirement 1. Make Far Away Inc.'s adjusting entry to accrue interest expense and interest payable at October 31, at November 30, and at December 31. Date each entry and include its explanation. (Record debits first, then

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...

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