Accruing interest on a note payable at year end

Transaction

The company issued a six-month, 7% note payable for $18,000.00 to a supplier 2 months before December 31. Principal and interest are due at maturity. Record the interest accrued at December 31.

Assumptions: Nothing has been recorded for the interest yet. Interest is computed in whole months: principal × rate × months / 12.