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

[dalyningkenk]

On November 1, 2011, Miracles, Inc. borrowed 30,000 on 12 note with both interest and principal due on May 1, 2012. Prepare the adjusting entry to record interest for the year ended December 31, 2011.
 
  Date Transaction Debit Credit

Question 2

The journal entry to close the income summary account (showing a net loss) includes
 a. debiting the drawing account and crediting Income Summary.
   b. debiting Income Summary and crediting the drawing account.
   c. debiting the owner's capital account and crediting Income Summary.
   d. debiting Income Summary and crediting the owner's capital account.

[jasonq]

Answer to Question 1

Date Transaction Debit Credit
12/31/11 Interest expense 600
Interest payable 600
To record interest expense

Answer to Question 2

c