On July 1, Alton Co. issued an $73,100,12%, 120-day note payable to Seller Co. Assume that...

Question

Question

On July 1, Alton Co. issued an $73,100,12%, 120-day note payable to Seller Co. Assume that the fiscal year of Alton Co. ends

Answer 1

Answer #1

Interest expense recognized by Alton

= 73,100 * 12% * 30 days /360 days

= 731

Option C is the answer

Comment if you face any

Answer 2

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