On November 7, 2017, Mura Company borrows $240,000 cash by signing a 90-day, 11% note payable...

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On November 7, 2017, Mura Company borrows $240,000 cash by signing a 90-day, 11% note payable...

On November 7, 2017, Mura Company borrows $240,000 cash by signing a 90-day, 11% note payable with a face value of $240,000. (Use 360 days a year. Do not round your intermediate calculations.) 1. Compute the accrued interest payable on December 31, 2017.

	Principal	x Rate (%)		x Time	= Interest
Total through maturity			%
Year end interest accrual			%
Interest recognized February 5			%

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Answer 1

Answer #1

	Principal	x rate %	x time	= interest
Total through maturity	240,000	11%	90/360	6600
Year end interest accrual	240,000	11%	54/360	3960
Interest recognized	240,000	11%	36/360	2640

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Answer 2

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