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Interest Payable-Quarterly Adjustments
Glendive takes out a 12%, 90-day, $100,000 loan with Second State Bank on March 1, 2014. Assume that Glendive prepares adjusting entries only four times a year: on March 31, June 30, September 30, and December 31.
Required
1. Prepare the journal entry on March 1, 2014.
2. Prepare the adjusting entry on March 31, 2014.
3. Prepare the entry on May 30, 2014, when Glendive repays the principal and interest to Second State Bank.
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