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Blatt corporation loaned 60,000 to Panda company on 11/1/19 and received a 6 month 8 %...

Blatt corporation loaned 60,000 to Panda company on 11/1/19 and received a 6 month 8 % interest-bearing note with a face value of 60,000. What adjusting entry should be made by Panda at 12/31/19?

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Answer #1
Interest has been accrued for 2 months (November and December)
Debit Credit
12/31/19 Interest expense 800 =60000*8%*2/12
         Interest payable 800
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