The following information was extracted from the financial record of Leong Cosmetics: (a) What is the effective

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The following information was extracted from the financial record of Leong Cosmetics:

2013 2012 Balance Sheet Notes payable Less: Discount on notes payable S200,000 $200,000 14,400 12,000 Income Statement S

(a) What is the effective interest rate on the notes payable?
(b) Prepare the journal entry to record interest expense during 2013.

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Financial Accounting in an Economic Context

ISBN: 978-0470635292

8th Edition

Authors: Jamie Pratt

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Question Posted: Nov 03, 2011 05:36 AM

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The following information was extracted from the financial record of Leong Cosmetics: (a) What is the effective

Question:

2013 2012 Balance Sheet Notes payable Less: Discount on notes payable S200,000 $200,000 14,400 12,000 Income Statement S 16,400 S 16,200 Interest expense

Step by Step Answer:

a Interest Expense Effective Rate Book Value of Debt at Beginning of the Period 16400 Ef...View the full answer

Financial Accounting in an Economic Context

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