On October 1 of year 1, a company borrowed $492,613 for six months with an interest rate of 8%. The company's year end is December 31. The note is fully paid on March 31 of year 2. How much interest expense should be recognized in year 2 when the note is paid? Provide your answer to the nearest whole dollar (i.e., no decimals).

On October 1 of year 1, a company borrowed $492,613 for six months with an interest rate of 8%. The company's year end is December 31. The note is fully paid on March 31 of year 2. How much interest expense should be recognized in year 2 when the note is paid? Provide your answer to the nearest whole dollar (i.e., no decimals).

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 1CE

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