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.) Principal Fiscal Year End: x (million) Interest Rate x Time Interest Expense December 31, 2024 $ 600 x 11 % × million September 30, 2024 $ 600 x 10 % x =1 million October 31, 2024 $ 600 x 9% x = million January 31, 2025 $ 600 x 6% x = 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.) Principal Fiscal Year End: x (million) Interest Rate x Time Interest Expense December 31, 2024 $ 600 x 11 % × million September 30, 2024 $ 600 x 10 % x =1 million October 31, 2024 $ 600 x 9% x = million January 31, 2025 $ 600 x 6% x = million
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Exercise 13-2 (Algo) Determining accrued interest in various situations [LO13-2]
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.)
x
Time
Fiscal Year End:
Principal
(million)
x
Interest
Rate
December 31, 2024
$
600
x
11 %
×
September 30, 2024
$
600
x
10 %
x
October 31, 2024
$
600
9%
x
January 31, 2025
$
600
6%
x
Interest Expense
million
million
million
million](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdcfb0428-8e62-41c8-9d2b-3e4003f8af75%2Fc2342ce0-8a9a-4aff-88ad-f6961eb065ab%2F9d9lkss_processed.png&w=3840&q=75)
Transcribed Image Text:Exercise 13-2 (Algo) Determining accrued interest in various situations [LO13-2]
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.)
x
Time
Fiscal Year End:
Principal
(million)
x
Interest
Rate
December 31, 2024
$
600
x
11 %
×
September 30, 2024
$
600
x
10 %
x
October 31, 2024
$
600
9%
x
January 31, 2025
$
600
6%
x
Interest Expense
million
million
million
million
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