Entity M signed a six-month note payable in the amount of $60,000 on October 1. The...

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Entity M signed a six-month note payable in the amount of $60,000 on October 1. The...

Entity M signed a six-month note payable in the amount of $60,000 on October 1. The note requires interest at an annual rate of 7%. The amount of interest expense Entity M must recognize at December 31 is:

		$4,200.
		$350.
		$1,050.
		$1,200.

business accounting

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Answer 1

Answer #1

Answer-The amount of interest expense Entity M must recognize at December 31 is = $1050.

Explanation- Amount of interest expense = ($60000*7%)*3 months/12 months

= $1050

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Answer 2

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