ABC Corporation’s liability account balances at June 30, 2018, included a 10% notes payable in the amount of 3,600,000. The note is dated October 1, 2018, and is payable in three equal annual payments of 1,200,000 plus interest. The first interest and principal payment was made on october 1, 2018. In its June 30, 2019, financial statemnet, what amount should be recorded as accrued interest for this note?
ABC Corporation’s liability account balances at June 30, 2018, included a 10% notes payable in the amount of 3,600,000. The note is dated October 1, 2018, and is payable in three equal annual payments of 1,200,000 plus interest. The first interest and principal payment was made on october 1, 2018. In its June 30, 2019, financial statemnet, what amount should be recorded as accrued interest for this note?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Corporation’s liability account balances at June 30, 2018, included a 10% notes payable in the amount of 3,600,000. The note is dated October 1, 2018, and is payable in three equal annual payments of 1,200,000 plus interest. The first interest and principal payment was made on october 1, 2018. In its June 30, 2019, financial statemnet, what amount should be recorded as accrued interest for this note?
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