A one-year, $15,600, 14% note is signed on April 1. If the note is repaid on October 1 of the same year, how much interest expense is incurred? a. $910 b. $1,092 c. $2,184 d. $1,274

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 16Q: Jain Enterprises honors a short-term note payable. Principal on the note is $425,000, with an annual...
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A one-year, $15,600, 14% note is signed on
April 1. If the note is repaid on October 1 of
the same year, how much interest expense
is incurred?
a. $910
b. $1,092
c. $2,184
d. $1,274
Transcribed Image Text:A one-year, $15,600, 14% note is signed on April 1. If the note is repaid on October 1 of the same year, how much interest expense is incurred? a. $910 b. $1,092 c. $2,184 d. $1,274
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