Unformatted text preview: Accrual of Interest - As ofJanuary 31, the amount of interest owed is
1I12 X .09 X $100,000 = $750 - The adjusting journal entry is: Interest expense 750 Accrued interest payable 750 - Failure to record the adjustment understates
both liabilities and expenses. ...
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- Fall '07
- Financial Accounting