preent in journal form adjusting entries that would be made on july 31,2011 the end of the fiscal year

1. apr 30, a ten month 9% note for $20,000 was received from a customer

what is est university

To record the adjusting entry for the April 30th, 2011 transaction, you would typically follow these steps:

Step 1: Determine the amounts and accounts involved in the transaction.
- A 10-month, 9% note for $20,000 was received from a customer on April 30, 2011.

Step 2: Identify the appropriate accounts to be adjusted.
- Since the note is received on April 30th and the fiscal year ends on July 31st, an adjusting entry is needed to account for the accrued interest expense for the three months from May to July.

Step 3: Calculate the accrued interest for the three-month period.
- To calculate the accrued interest, you need to find out the interest rate for the three-month period and the amount of the note. In this case, the interest rate is 9%, and the note amount is $20,000.

- The formula to calculate interest expense is: Principal amount x Interest rate x Time period (in years).
- Therefore, the accrued interest for the three-month period is: $20,000 x 9% x (3/12) = $450.

Step 4: Record the adjusting entry in the journal.
- On July 31, 2011, make the following adjusting entry in the journal:
Interest Expense $450
Accrued Interest Payable $450

- Debit the Interest Expense account for $450 to recognize the expense.
- Credit the Accrued Interest Payable account for $450 to represent the obligation to pay the interest in the future.

This adjusting entry would recognize the interest expense that has been incurred but not yet paid as of the end of the fiscal year on July 31, 2011.