Answer:
interest expense 250 debit
interest payable 250 credit
to record accrued interest
Explanation:
on December 31th the company will recognize the accrued interest from December 1st to December 31th year-end date
principal x rate x time = interest
Is always important to notice that rate and time must be expressed on the same metric. generally the rate are annual, so we will express time as fraction of a 12 months year
50,000 x 6% x 1/12 = 250
This will be the amount for accrued interest at december 31th
