Dedmon Co whose fiscal year ends December 31 borrowed 44300

Dedmon Co. , whose fiscal year ends December 31, borrowed $44,300 on September 1, 2016, issuing a 8%, ten-month note payable with interest due at maturity. When the note matures on June 30, 2017, Dedmon will write a journal entry that includes a debit to interest expense of $__________

Solution

Journal entry when note matures :

Debit to interest expense of $1772