Gen Combo Ll Financial Accounting Fundamentals; Connect Access Card
Gen Combo Ll Financial Accounting Fundamentals; Connect Access Card
7th Edition
ISBN: 9781260581256
Author: John Wild
Publisher: McGraw-Hill Education
Question
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Chapter 9, Problem 1MCQ
To determine

Interest Expenses:

Interest expenses represent that amount which is payable on any type of debt borrowed by a person at a fixed rate payable in fixed intervals.

To identify: The correct option.

Expert Solution & Answer
Check Mark

Explanation of Solution

Answer

‘Option b’ is correct.

Interest Expense

  IntrestExpenses=Principal×InterestRate×OutstandingDaysonDecember31360Days=$6,000×5%×30360days=$6,000×0.05×112=$25

Thus , interest expense is $25.

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Chapter 9 Solutions

Gen Combo Ll Financial Accounting Fundamentals; Connect Access Card

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