On May 1, 2024, Arrowhead Corp. issued a one-year note for $120,000 in exchange for equipment. The annual interest rate is 8%, and interest is paid semi-annually on November 1 and May 1 (the maturity date). What should Arrowhead record for interest expense on its March 31, 2025, adjusting entry, assuming earlier adjusting entries were recorded correctly?

On May 1, 2024, Arrowhead Corp. issued a one-year note for $120,000 in exchange for equipment. The annual interest rate is 8%, and interest is paid semi-annually on November 1 and May 1 (the maturity date). What should Arrowhead record for interest expense on its March 31, 2025, adjusting entry, assuming earlier adjusting entries were 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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