Question

Can anyone help with this problem below? It's accounting

Workshop 4 Problems Student Q Search Shoot + View AA. Doo Home Insert Page Layout Formulas Data , Xcut Calibri (Body) - 12 . A- A Paste Format B IU. .A. G11 x fx Review = = - EWrap Text Morge & Center General $ . % Good Check Cell . Insert * Dolete ) Conditional Format Formatting as Table Format Clear Filter H I J K L M N O P Q R S T U V 4 pts, each - 20 points 1 2 4.4 Accounting for a short-Term Note Payable Points: 5 Items Directions: Complete the chart below based on the baccaround information S 4 Background information: Anna Corporation barrowed $85,000 from the bank on October 1,2018. The rate had an 7% annual rate of interest and matured on March 31,2019. interest and principal were paid in cash 6 on the date on the maturity date. 9 a) What amount of cash did Anna pay for interest in 2018 10 b) What amount of interest expense was recognized on the 2018 income statement 11 c) What amount of total liabilities was reported on the December 31, 2018 balar ce sheat? 12 d) What total amount of cash was paid to the bank on March 31,2019 for principal and interest? 13 ) What amount of interest expense was reported on the 2019 income statement? 14 15 a) Interest Expense Paid 16 b) Interest Expense Hint: This will be the Interest Expense for 3 months for the note) 17 c) Total Liabilities Hint: This will be the LOAN amount and Interest Expense for 3 months) 18 d) Amount of Cash 19 ) Interest Expense 44 45 Problem 4.1 Problem 4.2 Problem 4.3 Problem 4.4 Problem 4.5 Problem 4.6 + Ready + 115%

Answer 1

a)	Interest expense paid	$            0.00
b)	Interest expense	$    1,487.50
c)	Total liabilities	$ 86,487.50
d)	Amount of cash paid	$ 87,975.00
e)	Interest expense	$    1,487.50

Answer a
Interest paid on the March 31, 2019. It means no interest paid in year 2018.
Interest paid	$               0.00
Answer b
Accrued interest expense for 3 months [October to December] is recognized on the 2018 income statement.
Interest expense (85000*7%*3/12)	$      1,487.50
Answer c
Interest payable	$      1,487.50
Notes payable	$    85,000.00
Total liabilities	$    86,487.50
Answer d
Interest for 6 months [October 2018 to March 2019] is paid on March 31, 2019.
Interest paid (85000*7%*6/12)	$      2,975.00
Notes payable	$    85,000.00
Total cash paid for principal and interest	$    87,975.00
Answer e
Interest expense for 3 months [January to March] is recognized on the 2019 income statement.
Interest expense (85000*7%*3/12)	$      1,487.50