Question

World Cuisine Restaurant borrowed $100,000 on October 1 by signing a note payable to Town One Bank. The interest expense for each month is $625. The loan agreement requires World Cuisine to pay interest on January 2 for October November and December Read the requirements 1. Make World Cuisine Travel's adjusting entry to accrue monthly interest expense at October 31, at November 30, and at December 31, Date each entry and include its explanation (Record debits first, then credits Select the explanation on the last line of the journal entry table) Make the adjusting entry to accrue monthly interest expense for October Journal Entry Accounts and Explanation Date Debit Credit Oct

Answer 1

Journal

Date	Account title	Debit	Credit
Oct. 31	Interest expense	625
	Interest payable		625
	(To record accrual of interest expense)
Nov. 30	Interest expense	625
	Interest payable		625
	(To record accrual of interest expense)
Dec. 31	Interest expense	625
	Interest payable		625
	(To record accrual of interest expense)

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