S10-1 On December 31, 2012, Edgmont purchased $10,000 of inventory on a

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S10-1 Accounting for a note payable [10 min]

On December 31, 2012, Edgmont purchased $10,000 of inventory on a one-year,
10% note payable. Edgmont uses a perpetual inventory system.

Requirements

1. Journalize the company’s accrual of interest expense on June 30, 2013, its fiscal
year-end.

2. Journalize the company’s payment of the note plus interest on December 31, 2013.