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.

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

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Answer 1

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Answer #1

From Nov 7th to Dec 31st there are 54 days.

Interest at 11% for 54 days should be calculated on $240,000

Accrued interest payable = $240,000 X 11% X 54/360 = $3,960

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Answer 2

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