XYZ Company borrowed $100,000 at a 9% interest rate on May 1, 20X1 for one year with interest and principal due on April 30, 20X2. How much cash will be paid for interest on December 31, 20X1? $6,000 O $0 O $9,000 O $3,000

XYZ Company borrowed $100,000 at a 9% interest rate on May 1, 20X1 for one year with interest and principal due on April 30, 20X2. How much cash will be paid for interest on December 31, 20X1? $6,000 O $0 O $9,000 O $3,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

XYZ Company borrowed $100,000 at a 9% interest rate
on May 1, 20X1 for one year with interest and principal
due on April 30, 20X2. How much cash will be paid for
interest on December 31, 20X1?
O $6,000
$0
O $9,000
O $3,000

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