Answer:
DR Interest Expense $18,150
CR Interest Payable $18,150
Explanation:
June 30 would mean that 6 months have elapsed since the note was issued. The interest rate is an annual one so will have to be adjusted for 6 months.
The interest expense so far will be;
= 605,000 * 6% * [tex]\frac{6}{12}[/tex]
= $18,150
This figure is to be debited to the Interest Expense account to show that it is an expense and credited to the Interest Payable account.
