Question

Cran Sales Company completed the following note payable transactions: (Click the icon to view the transactions.) Read the requirements. Requirement 1. How much interest expense must be accrued at December 31, 2018? (Round your answer to the nearest whole dollar.) The interest expense accrued at December 31, 2018 is $ L 1 Requirements X - More Info 1. 2018 How much interest expense must be accrued at December 31, 2018? (Round your answer to the nearest whole dollar.) Determine the amount of Cran Sales' final payment on July 1, 2019. How much interest expense will Cran Sales report for 2018 and for 2019? (If needed, round your answer to the nearest whole dollar.) Jul 1 3. Purchased delivery truck costing $61,000 by issuing a one-year, 8% note payable. Accrued interest on the note payable. Dec 31 2019 Jul 1 Paid the note payable at maturity. Print Done Print Done

Answer 1

Statement showing Computations
Particulars	Amount
a)
Interest Expense -Dec 31'2018= 61,000*8%*1/2	2,440.00
b)
Interest from Jan 01 to Jul 01 '2019 =61,000*8%*1/2	2,440.00
Note Payable	61,000.00
Interest - Jul 01 to Dec 31'2018	2,440.00
Interest - Jan 01 to Jul01'2019	2,440.00
Cran sales final payment	65,880.00
c)
Interest Expense 2018	2,440.00
Interest Expense 2019	2,440.00