ABC Corporation borrows $60,000 on a note payable that charges annual interest of 6 percent. The company's Sept. 30 balance sheet shows Interest Payable of $2,100. How many months earlier did ABC borrow the money?

ABC Corporation borrows $60,000 on a note payable that charges annual interest of 6 percent. The company's Sept. 30 balance sheet shows Interest Payable of $2,100. How many months earlier did ABC borrow the money?

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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Question

ABC Corporation borrows $60,000 on a note payable that charges annual interest of 6 percent. The company's Sept. 30 balance sheet shows
Interest Payable of $2,100. How many months earlier did ABC borrow the money?
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