On december 1, milton company borrowed $500,000, at 9% annual interest, from the tennessee national bank. interest is paid when the loan matures one year from the issue date. what is the adjusting entry for accruing interest that milton would need to make on december 31, the calendar year-end?

Adjusting entry for the Interest Payable:

It is given that on December 1, Milton company borrowed $500,000, at 9% annual interest. The Interest is paid when the loan matures one year from the issue date.

It means we need to make adjustment for the interest expense and interest payable for the month of December. The interest for one month shall be (500,000*9%/12) = $3,750

The adjusting entry for accruing interest that Milton would need to make on December 31, the calendar year-end shall be as follows:

Interest Expense Debit  $3,750

Interest Payable Credit                $3,750

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.