Question: UMC Company purchased equipment on July 1 2010 and gave
UMC Company purchased equipment on July 1, 2010, and gave a three-month, 9% note with a face value of $10,000. How much interest expense will be recognized on the income statement for the year ended December 31, 2010? What effect does the repayment of the note plus interest have on the statement of cash flows for 2010?
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