During the past few years, ABC Company has taken out the following loans from the bank:...

Question

Question

During the past few years, ABC Company has taken out the following loans from the bank:...

During the past few years, ABC Company has taken out the
following loans from the bank:

1)  On September 1, 2022, ABC Company borrowed $18,000 on
    a 10%, 11-month note payable

2)  On June 1, 2023, ABC Company borrowed $36,000 on an 8%,
    8-month note payable

Calculate the total amount of interest expense related to
these two loans that ABC Company would report in its 2023
income statement assuming a year-end of December 31.

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Total amount of interest expense in 2023 income statement = $36,000 * 8% * 7 / 12

= $1,680

Add a comment

Answer 2

Similar Homework Help Questions

During the past few years, ABC Company has taken out the following loans from the bank:...

During the past few years, ABC Company has taken out the following loans from the bank: 1) On September 1, 2022, ABC Company borrowed $18,000 on a 10%, 11-month note payable 2) On June 1, 2023, ABC Company borrowed $36,880 on an 8%, 8-month note payable Calculate the total amount of interest expense related to these two loans that ABC Company would report in its 2023 income statement assuming a year-end of December 31.
During the past few years, ABC Company has taken out the following loans from the bank:...

During the past few years, ABC Company has taken out the following loans from the bank: 1) On October 1, 2025, ABC Company borrowed $162,000 on an 18%, 11-month note payable 2) On June 1, 2026, ABC Company borrowed $134,000 on a 12%, 9-month note payable Calculate the total amount of interest expense related to these two loans that ABC Company would report in its 2026 income statement assuming a year-end of December 31.
During the past few years, D-1404 Company has taken out the following loans from the bank:...

During the past few years, D-1404 Company has taken out the following loans from the bank: 1) On October 1, 2025, D-1404 Company borrowed $64,000 on an 18%, 11-month note payable 2) On June 1, 2026, D-1404 Company borrowed $63,000 on a 12%, 9-month note payable Calculate the total amount of interest expense related to these two loans that D-1404 Company would report in its 2026 income statement assuming a year-end of December 31.

On October 1, 2022, TGW Company borrowed $26,000 from a bank on a 9%, 8-month note...

On October 1, 2022, TGW Company borrowed $26,000 from a bank on a 9%, 8-month note payable. Calculate the amount of interest expense reported by TGW Company in its 2023 income statement related to this loan.On October 1, 2022, TGW Company borrowed $26,000 from a bank on a 9%, 8-month note payable. Calculate the amount of interest expense reported by TGW Company in its 2023 income statement related to this loan.
The following account balances were taken from ABC Company's unadjusted trial balance at December 31, 2021:...

The following account balances were taken from ABC Company's unadjusted trial balance at December 31, 2021: Accounts Payable Accounts Receivable ......... Advertising Expense .... Building ............ Cash ............... Common Stock ....... Cost of Goods Sold Dividends ... Equipment . . . . . . . ... Income Tax Expense Interest Revenue Inventory ......... Notes Payable ..... Rent Expense ....... Retained Earnings. Sales Revenue ...... Trademark ........... Unearned Revenue $58,000 $64,000 $14,000 $63,000 $30,000 $94,000 $45,000 $12,000 $68,000 $17,000 $36,000 $62,000...
The following account balances were taken from ABC Company's unadjusted trial balance at December 31, 2021:...

The following account balances were taken from ABC Company's unadjusted trial balance at December 31, 2021: Accounts Payable ............ $58,000 Accounts Receivable .......... $64,000 Advertising Expense ......... $14,000 Building .................... $63,000 Cash ............... $30,000 Common Stock $94,000 Cost of Goods Sold ..... $45,000 Dividends ..... $12,000 Equipment ....... $68,000 Income Tax Expense ........ $17,000 Interest Revenue ..... $36,000 Inventory .......... $62,000 Notes Payable ....... $81,000 Rent Expense ......... $10,000 Retained Earnings .... $40,000 (at January 1, 2021) Sales Revenue ...........

Kelly Jones and Tami Crawford borrowed $36,000 on a 7-month, 4% note from Gem State Bank...

Kelly Jones and Tami Crawford borrowed $36,000 on a 7-month, 4% note from Gem State Bank to open their business, Ivanhoe's Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023 Prepare the entry to record the receipt of the funds from the loan. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation June 1 SHOW LIST OF ACCOUNTS LINK TO...
Kelly Jones and Taml Crawford borrowed $24,000 on a 7-month, 8% note from Gem State Bank...

Kelly Jones and Taml Crawford borrowed $24,000 on a 7-month, 8% note from Gem State Bank to open their business, Sunland's Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023. Prepare the entry to record the receipt of the funds from the loan. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation June 1 Prepare the entry to accrue the...
Kelly Jones and Tami Crawford borrowed $25,500 on a 7-month, 4% note from Gem State Bank...

Kelly Jones and Tami Crawford borrowed $25,500 on a 7-month, 4% note from Gem State Bank to open their business, Sunland's Coffee House. The money was borrowed on June 1, 2022, and the note matures January 1, 2023. Prepare the entry to record the receipt of the funds from the loan. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit June 1 eTextbook and Media List of Accounts...

The Notes Payable balance of $829,350 results from two loans the company has taken. On November...

The Notes Payable balance of $829,350 results from two loans the company has taken. On November 1, 2017, Powell took a 4-year, 5%, $654,350 loan. The interest on this loan is payable annually, on each October 31. Also, On June 1, 2018, Powell took a 1-year, 8%, $175,000 construction loan (see A7 below). The interest on this loan is payable on the maturity date, May 31, 2019. Note– Powell already recorded the interest paid on these loans in 2018. For...

During the past few years, ABC Company has taken out the following loans from the bank:...

Homework Answers