On October 1, 2022, Beacon Industries issued a one-year, 10%, $120,000 note payable. What is the interest expense that should be recorded on December 31, 2022, for the current year? a. $3,000 b. $12,000 c. $2,400 d. $4,000

On October 1, 2022, Beacon Industries issued a one-year, 10%, $120,000 note payable. What is the interest expense that should be recorded on December 31, 2022, for the current year? a. $3,000 b. $12,000 c. $2,400 d. $4,000

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 1PA: On January 1, 2018, King Inc. borrowed $150,000 and signed a 5-year, note payable with a 10%...

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Question

Please provide the solution to this general accounting question with accurate financial calculations.

On October 1, 2022, Beacon Industries issued a one-year, 10%, $120,000 note payable.
What is the interest expense that should be recorded on December 31, 2022, for the
current year?
a. $3,000
b. $12,000
c. $2,400
d. $4,000

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