A company borrowed $40,000 on June 30, 2016 from a bank. The
bank is charging an...
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Accounting
A company borrowed $40,000 on June 30, 2016 from a bank. Thebank is charging an interest rate of 10% annually. Interest iscompounded quarterly. If the loan is due on September 30, 2017, howmany times will the company record a journal entry for InterestExpense over the whole loan period?
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Journal Entry for expenses shall be recorded at quarterly rest as interest is compunded quarterly So the journal entry would be Interest Expenses XXX Loan Payable XXX We have to credit loan
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