Answer:
Explanation:
The adjusting entry is shown below:
Interest expense A/c Dr $287
To Interest payable A/c $287
(Being accrued interest adjusted)
The computation is shown below:
Principal × rate of interest × number of days ÷ (total number of days in a year)
= $24,600 × 10% × (42 days ÷ 360 days)
= $287
( 11 days in November + 31 Days in December)
