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puteri [66]
2 years ago
13

Blanchard Corporation issued a 1-year, 9%, $150,000 note payable on April 30, 2022. Interest expense for the year ended December

31, 2021, is $8,000. $9,000. $12,000. $6,000.
Business
1 answer:
WITCHER [35]2 years ago
8 0

The interest expense for the year ended December 31, 2021, for Blanchard Corporation is b) $9,000.

<h3>How is interest expense computed?</h3>

Interest expense is prorated.  Since Blanchard Corporation issued the notes on April 30, the interest expense for the year will not be for 12 months but only 8 months (May to December).

<h3>Data and Calculations:</h3>

Note payable = $150,000

Interest rate = 9%

Period of note = 1 year

Date of issuance = April 30, 2020

Interest expense at December 31, 2021 = $9,000 ($150,000 x 9% x 8/12)

Thus, the interest expense for the year ended December 31, 2021 is b) $9,000.

Learn more about interest expense at brainly.com/question/16134508

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