On July 1, 2024, Li-Ma Industries issued nine-month notes in the amount of $600 million. Interest is payable at maturity. Required: Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions: Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10.) Fiscal Year End: December 31, 2024 September 30, 2024 October 31, 2024 January 31, 2024 Principal (million) $ $ FA $ $ EA x 600 x 600 x 600 600 X Interest Rate 11 % 10 % 9 % 6 % X X X Time 6/12 3/12 4/12 7/12 = || Interest Expense million million million million
On July 1, 2024, Li-Ma Industries issued nine-month notes in the amount of $600 million. Interest is payable at maturity. Required: Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions: Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10.) Fiscal Year End: December 31, 2024 September 30, 2024 October 31, 2024 January 31, 2024 Principal (million) $ $ FA $ $ EA x 600 x 600 x 600 600 X Interest Rate 11 % 10 % 9 % 6 % X X X Time 6/12 3/12 4/12 7/12 = || Interest Expense million million million million
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On July 1, 2024, Li-Ma Industries issued nine-month notes in the amount of $600 million. Interest is payable at maturity.
Required:
Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the
following independent assumptions:
Note: Enter your answers in millions (i.e., 10,000,000 should be entered as 10.)
Fiscal Year End:
December 31, 2024
September 30, 2024
October 31, 2024
January 31, 2024
Principal
(million)
$
$
$
$
600
600
600
600
x
X
X
Interest
Rate
11 %
10 %
9 %
6 %
X
X
X
Time
6/12
3/12
4/12
7/12
=
||
Interest Expense
million
million
million
million
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