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Ugo [173]
3 years ago
11

On July 1, 2008, Blitzer Inc. signed a one-year, 6% interest-bearing note payable for $5,000. Blitzer Inc. has a December 31 yea

rend. The amount of interest expense that should be reported in the 2008 income statement for this note (rounded to the nearest dollar) would be
Business
1 answer:
marishachu [46]3 years ago
5 0

Answer:

interest expense = $150

Explanation:

the journal entry to record accrued interest:

December 31, 2018, accrued interest from note payable

Dr Interest expense 150

    Cr Interest payable 150

interest expense = principal x interest rate x time = $5,000 x 6% x 6/12 = $150

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