Question

Help ASAP Please

Answer 1

Ans:

1) Increase

2) Interest Expense

3) Interest Payable

Explanation:

1) When computer system is purchased, asset is increased i.e. worth is increase and journal entry will be as follows:

Date	Account Name	Debit	Credit
1.	Computer System	$ 19,000
	To Cash		$4000
	To Note Payable		$15,000

2) At the end of year, adjusting entry is made to record interest expense ( interest is accrued but not paid) and liabity to show to due interest payment.

Date	Account Name	Debit	Credit
2.	Interest Expense	XX
	To Interest Payable		XX
	( Since data is not given regarding interest percentage so we can not calculate the amount.)