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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.

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.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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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