Brief exercise 3-12 record the adjusting entry for interest payable (lo3–3) midshipmen company borrows $17,000 from falcon company on july 1, 2021. midshipmen repays the amount borrowed and pays interest of 12% (1%/month) on june 30, 2022. required: 1& 2. record the necessary entries in the journal entry worksheet below. 3. calculate the 2021 year-end adjusted balances of interest payable and interest expense (assuming the balance of interest payable at the beginning of the year is $0).

Calculate the 2021 year-end adjusted balances of Interest Payable and Interest Expense.

July 1 2021    

Db Cash 17000    

Cr Borrow payable  17000        

December 31 2021      

Db Interest expense1020    

Cr Interest payable  1020  

June 30 2022          

Db Interest expense1020    

Cr Interest payable  1020  

Explanation:

Borrow                       Loan__%I__ Int.___Amount      

July 1 2021 to December 31 2021  170006%1020__18020

July 1 2021    

1    

Db Cash 17000    

Cr Borrow payable  17000  

December 31 2021    

Db Interest expense1020    

Cr Interest payable  1020  

June 30 2022    

Db Interest expense1020    

Cr Interest payable  1020  

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