Jane's Donut Co. borrowed $198,000 on January 1, 2021, and signed a two-year note bearing interest at 11%. Interest is payable i

Question

3 years ago

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Jane's Donut Co. borrowed $198,000 on January 1, 2021, and signed a two-year note bearing interest at 11%. Interest is payable i

n full at maturity on January 1, 2023. In connection with this note, Jane's should report interest expense at December 31, 2021, in the amount of: Multiple Choice

Business

1 answer:

spayn [35] · Answer 1 · 2022-07-29T17:07:29+03:00

Answer:

$21,780

Explanation:

Calculation to determine what Jane's should report interest expense at December 31, 2021, in the amount of:

Interest expense at December 31, 2021=$198,000 x 11% x 12/12

Interest expense at December 31, 2021= $21,780

Therefore Jane's should report interest expense at December 31, 2021, in the amount of: $21,780