The following information was extracted from the financial records of Leong Cosmetics: a. What is the effective
Question:
The following information was extracted from the financial records of Leong Cosmetics:
a. What is the effective interest rate on the notes payable?
b. Prepare the journal entry to record interest expense during2016.
Transcribed Image Text:
2016 2015 Balance Sheet Notes payable Less: Discount on notes payable Income Statement Interest expense $200,000 $200,000 14,400 12,000 $16,400 $16,200
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