Riverside Sporting Goods Inc. began 2017 owing notes payable of $ 3.6 million. During 2017, the company borrowed $ 2.2 million on notes payable and paid off $ 1.9 million of notes payable from prior years. Interest expense for the year was $ 1.2 million, including $ 0.1 million of interest payable accrued at December 31, 2017.   Show what Riverside Sporting Goods Inc. should report for these facts on the following financial statements: 1. Income statement     a. Interest expense 2. Balance sheet         a. Notes payable     b. Interest payable

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Riverside Sporting Goods Inc. began 2017 owing notes payable of $ 3.6 million. During 2017, the company borrowed $ 2.2 million on notes payable and paid off $ 1.9 million of notes payable from prior years. Interest expense for the year was $ 1.2 million, including $ 0.1 million of interest payable accrued at December 31, 2017.

 

Show what Riverside Sporting Goods Inc. should report for these facts on the following financial statements:

1. Income statement

    a. Interest expense

2. Balance sheet    

    a. Notes payable

    b. Interest payable

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