A $ 43 comma 000,twominusmonth,10%note payable was issued on December 1, 2018. What is the amount of interest expense recorded in the year 2019? (Round your final answer to the nearest dollar.)

Preparation of the amount of interest expense recorded in the year 2019

Dr Notes Payable 43,000

Dr Interest expense 358.33

($43,000 × 0.1% × 1/12)

Dr Interest Payable 358.33

($43,000 × 0.1% × 1/12)

Cr Cash 43,716.66

Explanation:

Since  $ 43,000 2month and 10%note payable were been  issued on December 1, 2018 this means we have to record the transaction by Debiting  Notes Payable 43,000, Debiting Interest expense 358.33 ($43,000 × 0.1% × 1/12) and Debiting Interest Payable 358.33

($43,000 × 0.1% × 1/12) while we Credit Cash with 43,716.66(43,000+358.33+358.33)

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