Question

on november 7, mura company borrows $270,000 cash by signing a 90 - day, 10%, $270,000 note payable. complete this question by entering your answers in the tabs below. req 1 req 2 and 3 prepare the journal entries to record the accrued interest expense at december 31 and pa note: use 360 days a year. do not round your intermediate calculations. view transaction list journal entry worksheet 1 2 record the accrued interest expense. note: enter debits before credits. date general journal debit credit december 31

Explanation:

Step1: Calculate the number of days from November 7 to December 31

November has 30 days. From November 7 to November 30, there are $30 - 7= 23$ days. December has 31 days. So the total number of days is $23 + 31=54$ days.

Step2: Calculate the accrued - interest expense

The simple - interest formula is $I = P\times r\times t$, where $P$ is the principal amount, $r$ is the annual interest rate, and $t$ is the time in years. Here, $P=\$270000$, $r = 10\%=0.1$, and $t=\frac{54}{360}$.
$I=270000\times0.1\times\frac{54}{360}$
$I = 270000\times0.1\times0.15$
$I=\$4050$

Step3: Record the journal entry

The journal entry to record the accrued interest expense on December 31 is:
Debit Interest Expense $4050$
Credit Interest Payable $4050$

Answer:

Date	General Journal	Debit	Credit
December 31	Interest Payable		$4050$