Question

OS Environmental provides cost-effective solutions for managing regulatory requirements and environmental needs specific to the airline industry. Assume that on July 1, 2015, the company issues a one-year note for the amount of $6 million. Interest is payable at maturity.

Required:
Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions:
Interest Rate Fiscal Year-End
1. 11% .......... December 31
2. 9% .......... September 30
3. 10% .......... October 31
4. 7% .......... January 31



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  • CreatedJuly 15, 2014
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