Rice Inc. issued a 120-day note in the amount of $150,000 on October 31, 2013, with an annual rate of 6%. What amount of interest has accrued as of December 31, 2013? (a) $1,500 (b) $1,125 (c) $4,500 (d) $ 750 (e) Zero. The interest is accrued at the end of the 120 day period.

Rice Inc. issued a 120-day note in the amount of $150,000 on October 31, 2013, with an annual rate of 6%. What amount of interest has accrued as of December 31, 2013? (a) $1,500 (b) $1,125 (c) $4,500 (d) $ 750 (e) Zero. The interest is accrued at the end of the 120 day period.

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 has accrued as of December 31, 2013 on these accounting question?

Rice Inc. issued a 120-day note in the amount of $150,000 on October 31, 2013, with an annual
rate of 6%. What amount of interest has accrued as of December 31, 2013?
(a) $1,500
(b) $1,125
(c) $4,500
(d) $ 750
(e) Zero. The interest is accrued at the end of the 120 day period.

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