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Required information Sales revenue Cost of goods sold Gross profit Operating expenses $ 206,380 93,600 112,780 Salaries and wages expense Rent expense Supplies expense Insurance expense Advertising expense Depreciation expense 19,650 13,200 1,820 1,950 3,200 10,500 50,320 62,460 Total operating expenses Operating income Other income (expense) Interest revenue 1,660 1,827 (167) $62,293 Interest expense Net income1. Depreciation on the office equipment for the year is $10,500. 2. Employee salaries and wages are paid twice a month, on the 22nd for salaries and wages earned from the 1st through the 15th, and on the 7th of the following month for salaries and wages earned from the 16th through the end of the 3. On October 1, 2018, Pastina borrowed $60,900 from a local bank and signed a note. The note requires interest to be 4. On March 1, 2018, the company lent a supplier $24,900 and a note was signed requiring principal and interest at 8% to 5. On April 1, 2018, the company paid an insurance company $5,200 for a two-year fire insurance policy. The entire 6. $830 of supplies remained on hand at December 31, 2018. month. Salaries and wages earned from December 16 through December 31, 2018, were $1,350. paid annually on September 30 at 12%. The principal is due in 10 years be paid on February 28, 2019. $5,200 was debited to insurance expense. 7. A customer paid Pastina $1,620 in December for 1,350 pounds of spaghetti to be delivered in January 2019. Pastina credited sales revenue 8. On December 1, 2018, $2,200 rent was paid to the owner of the building. The payment represented rent for December 2018 and January 2019, at $1,100 per monthWhy is the interest expense not $1827???

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Answer #1

The Interest expense that you calculated is 100%b correct.

The issue is that, Interest Expense of $ 1,827 is an EXPENSE.

If you look at the heading "Other Income (expense)" it says that 'expense' are to be written or entered as 'NEGATIVE AMOUNT'.

Hence, just enter $ 1,827 as negative amount as $ - 1827 or ($ 1,827) and your answer will be correct.

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