Answer
a) 1 Jul -
Cash - 90,000 dollars (Debit)
Note payaple - 90,000 dollars (Credit)
b) 31 Dec. -
Interest expense - 3,600 dollars (Debit)
Interest payable - 3,600 dollars (Credit)
Work Step by Step
a) To record the issuance of Note payable Of 12% on year to Bank
b) To accrue interest for six months on Bank Notes payable
