Ancient Grains Inc. issued a 4 month note in the amount of $500,000 on October 1,...

Question

Question

Ancient Grains Inc. issued a 4 month note in the amount of $500,000 on October 1, 2021 with an annual rate of 5%. What amount

Answer 1

Answer #1

Date of issue notes	October 1
Date of reporting the financial statements	December 31
Interest accrued for number of months (October, November, December)	3 Months

*Amount of accrued interest (5000005%3/12)*	$ 6,250
The correct option is B.	$ 6,250

Answer 2

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