WORKING NOTES: | |||||
CALCULATION OF INTEREST EXPENSES OF 12% NOTE AS ON 31/01/2019 | |||||
Value of note | $ 16,000 | ||||
Interest Rate | 12% | ||||
Interest Amount of one year = | $ 1,920 | ||||
Interest for 3 months = $ 1,920 X 3 / 12 month | $ 480 | ||||
SOLUTION : 1 | |||||
BALANCE SHEET (PARTIAL) | |||||
YEAR ENDED JANUARY 31 , 2019 | |||||
ASSETS | AMOUNT | LIABILITIES (PARTIAL) | AMOUNT | ||
Current Liabilities | |||||
Short term note Payable | $ 16,000 | ||||
Interest on note Payable | $ 480 | ||||
Total | $ 16,480 | ||||
SOLUTION : 2 | |||||
INCOME STATEMENT (PARTIAL) | |||||
YEAR ENDED JANUARY 31 , 2019 | |||||
Revenue | |||||
Expenses : | |||||
Interest expenses | $ 480 | ||||
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