Financial accounting question!

financial-accounting

#1

Financial accounting question!

Answer:

Principle is 35,000
Rate is 9% or .09
Our time, is this case is 4/12 since December is 4 months from Sept 1
Now : 35,000(.09)(4/12)=$1050
So now we need a Journal entry to record our Interest Expense

Interest Expense 1050(debit)
Interest Payable 1050(credit)

So in total he is paid back $36,050