A note payable dated October 1, 2014 has a face value of $10,000, an interest rate stipulated at 10%, and a maturity date of April 1, 2015. Interest expense (pertaining to this note) to appear on the income statement for the year ending December 31, 2014 amounts to: a. $0. b. $125.00. c. $166.67. d. $250.00.
A note payable dated October 1, 2014 has a face value of $10,000, an interest rate stipulated at 10%, and a maturity date of April 1, 2015. Interest expense (pertaining to this note) to appear on the income statement for the year ending December 31, 2014 amounts to: a. $0. b. $125.00. c. $166.67. d. $250.00.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 22MC: A company collects an honored note with a maturity date of 24 months from establishment, a 10%...
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![A note payable dated October 1, 2014 has a face value of
$10,000, an interest rate stipulated at 10%, and a maturity date
of April 1, 2015. Interest expense (pertaining to this note) to
appear on the income statement for the year ending December
31, 2014 amounts to:
a. $0.
b. $125.00.
c. $166.67.
d. $250.00.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F83f78f71-c5bb-40f3-9086-ef000e98deb0%2Fff71693c-bd6a-44f2-9d6b-6af0e1807a29%2Fy9cx9l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A note payable dated October 1, 2014 has a face value of
$10,000, an interest rate stipulated at 10%, and a maturity date
of April 1, 2015. Interest expense (pertaining to this note) to
appear on the income statement for the year ending December
31, 2014 amounts to:
a. $0.
b. $125.00.
c. $166.67.
d. $250.00.
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