On March 1, 2019, a company borrows $50,000 by signing a note. The note has a 6% annual interest rate and matures on December 31, 2019. Interest and principal are paid in cash on the maturity date. What amount of interest expense would the company report in 2019?

On March 1, 2019, a company borrows $50,000 by signing a note. The note has a 6% annual interest rate and matures on December 31, 2019. Interest and principal are paid in cash on the maturity date. What amount of interest expense would the company report in 2019?

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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Question

What amount of interest expense would the company report in 2019 on these financial accounting question?

On March 1, 2019, a company borrows $50,000 by signing a note.
The note has a 6% annual interest rate and matures on December
31, 2019. Interest and principal are paid in cash on the maturity
date.
What amount of interest expense would the company report in
2019?

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