On September 1, 2011, Miracles, Inc. borrowed 30,000 on 12 note ...

[azncindy619]

On September 1, 2011, Miracles, Inc. borrowed 30,000 on 12 note with both interest and principal due on June 1, 2012. Post the adjusting entry for the year ended December 31, 2011 in the T-accounts below:
 
  What will be an ideal response?

Question 2

The journal entry to close expense accounts includes
 a. debiting the expense accounts and crediting Income Summary.
   b. debiting Income Summary and crediting the expense accounts.
   c. debiting the expense accounts and crediting the owner's capital account.
   d. debiting the expense accounts and crediting the drawing account.

[nickk12214]

Answer to Question 1

Interest payable
1,200

Interest expense
1,200

Answer to Question 2

b