Yeast Company issued a $5000 face value note payable to the State Bank on December 1, 2014. The note had a 12 percent annual rate of interest and a one-year term. The amount of cash paid for interest in 2015 is: a. $550 b. $50 c. $600 d. none of the above

Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 11E
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Yeast Company issued a $5000 face value note payable
to the State Bank on December 1, 2014. The note had a
12 percent annual rate of interest and a one-year term.
The amount of cash paid for interest in 2015 is:
a. $550
b. $50
c. $600
d. none of the above
Transcribed Image Text:Yeast Company issued a $5000 face value note payable to the State Bank on December 1, 2014. The note had a 12 percent annual rate of interest and a one-year term. The amount of cash paid for interest in 2015 is: a. $550 b. $50 c. $600 d. none of the above
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