Golden Horizon Enterprises gave a one-year note to Sunshine Builders on May 1, 2013, in exchange for equipment. The face value of the note was $150,000. The interest rate was 8% and interest was paid on October 31 and April 30 (which is also the due date). What should Golden Horizon Enterprises record for interest expense in the appropriate entry at April 30, 2014, assuming the earlier adjusting entries have been recorded correctly?

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 24Q: Chemical Enterprises issues a note in the amount of $156,000 to a customer on January 1, 2018. Terms...
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Golden Horizon Enterprises gave a one-year note to Sunshine
Builders on May 1, 2013, in exchange for equipment. The face value
of the note was $150,000. The interest rate was 8% and interest
was paid on October 31 and April 30 (which is also the due date).
What should Golden Horizon Enterprises record for interest expense
in the appropriate entry at April 30, 2014, assuming the earlier
adjusting entries have been recorded correctly?
Transcribed Image Text:Golden Horizon Enterprises gave a one-year note to Sunshine Builders on May 1, 2013, in exchange for equipment. The face value of the note was $150,000. The interest rate was 8% and interest was paid on October 31 and April 30 (which is also the due date). What should Golden Horizon Enterprises record for interest expense in the appropriate entry at April 30, 2014, assuming the earlier adjusting entries have been recorded correctly?
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