On July 1, 2013, Avery Services Issued a 4% Long-Term

question 110

Essay

On July 1, 2013, Avery Services issued a 4% long-term note payable for $10,000. It is payable over a 5-year term in $2,000 principal installments on July 1 of each year. Each yearly installment will include both principal repayment of $2,000 and interest payment for the preceding one-year period. Please provide the journal entry needed at year-end 2013 to accrue the interest expense from July 1 through the end of the year.

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Definitions:

Encourages Subordinates

Inspires or motivates lower-ranking employees to perform well and be positive about their tasks and work environment.

Voice Opinion

The act of expressing one's thoughts, beliefs, or judgments openly.

Promote Values

Activities and strategies used to emphasize and integrate core values into the culture and operations of an organization or group.

Welfare of Individuals

The health, happiness, and fortunes of people, often considered a responsibility of organizations or governments.