Question

The following table includes five separate short-term note payable scenarios. Exercise 15-59 Calculating Accrued Interest Expense L04 Stated Rate Fiscal Year-End Accrued Interest at Fiscal Year-End Note Payable Issuance Date Term 1 2 3 4 5 $5,000 note payable September 1, 2020 $5,000 note payable September 30, 2020 $2,000 note payable November 1, 2020 $2,000 note payable November 30, 2020 $10,000 note payable May 31, 2020 6-month 6-month 3-month 3-month 12-month 6% 6% 8% 8% 10% December 31 December 31 December 31 December 31 November 30 Required For each separate scenario, complete the last column in the table by calculating interest expense accrued at the relevant fiscal year-end.

Answer 1

Calculate accrued interest

	Notes payable	Issuance date	Term	Stated rate	Fiscal year end	Accrued interest at fiscal year end
1.	5000 Notes payable	September 1,2020	6 months	6%	December 31	5000*6%*4/12 = 100
2	5000 Note payable	September 30,2020	6 months	6%	December 31	5000*6%*3/12 = 75
3	$2000 Note payable	November 1,2020	3 month	8%	December 31	2000*8%*2/12 = 27
4	$2000 Note payable	November 30,2020	3 months	8%	December 31	2000*8%*1/12 = 13
5	$10000 Note payable	May 31,2020	12 months	10%	November 30	10000*10%*6/12 = 500