On March 1, 2016, Emerson Services issued a 9% long-term notes payable for $20,000. It is payable over a 5-year term in $4,

Question

2 years ago

6

On March 1, 2016, Emerson Services issued a 9% long-term notes payable for $20,000. It is payable over a 5-year term in $4,

000 annual principal payments on March 1 of each year plus interest, beginning March 1, 2017. Each yearly installment will include both principal repayment of $4,000 and interest payment for the preceding one-year period. On March 1, 2017, ________. The accounting period ends on December 31.

Business

1 answer:

Scrat [10] · Answer 1 · 2022-08-12T20:18:56+03:00

Scrat [10]2 years ago

4 0

Answer:

Emerson must pay $1,800 of interest to the note holder.

Explanation:

Interest Expense = $20,000 x 0.09

Interest Expense = $1,800

On March​ 1, 2016, Emerson Services issued a​ 9% long-term notes payable for​ $20,000. It is payable over a​ 5-year term in​ $4,

On March 1, 2016, Emerson Services issued a 9% long-term notes payable for $20,000. It is payable over a 5-year term in $4,