Moss County Bank agrees to lend the Sunland Company $605000 on January 1. Sunland Company signs a $605000, 6%, 9-month note. What is the adjusting entry required if Sunland Company prepares financial statements on June 30

DR Interest Expense $18,150

CR Interest Payable $18,150

Explanation:

June 30 would mean that 6 months have elapsed since the note was issued. The interest rate is an annual one so will have to be adjusted for 6 months.

The interest expense so far will be;

= 605,000 * 6% *

= $18,150

This figure is to be debited to the Interest Expense account to show that it is an expense and credited to the Interest Payable account.

odd consecutive integers are odd integers that follow each other. they have a difference of 2 between every two numbers. if n is an odd integer, then n, n+2, n+4 and n+6 will be odd consecutive integers. the first number in the pattern is always the variable on its own or in this case, "n". examples.