On March 1, 2017, Fun Company borrowed 1, 000,000 and signed a 2-year note bearing interest at 12% per annum compounded annually. Interest is payable in full at maturity on Feb. 28, 2019. What amount should Fun report as a liability for accrued interest at Dec. 31, 2018?

On March 1, 2017, Fun Company borrowed 1, 000,000 and signed a 2-year note bearing interest at 12% per annum compounded annually. Interest is payable in full at maturity on Feb. 28, 2019. What amount should Fun report as a liability for accrued interest at Dec. 31, 2018?

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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