please help On June 1, Davis Inc. issued an $60,000, 10%, 120-day note payable to Garcia...

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On June 1, Davis Inc. issued an $60,000, 10%, 120-day note payable to Garcia Company. Assume that the fiscal year of Garcia e

Answer 1

Answer #1

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Davis Inc.
	Amount $	Note
Note Value	60,000.00	A
Period (days)	120.00	B
Interest rate	10%	C
Total Interest	2,000.00	*D=ABC/360*
Number of days in fiscal year i.e. from June 1 to June 30	30.00	E
Interest revenue to be recorded for this fiscal year	500.00	*F=DE/B**

So answer is option C.

Answer 2

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