Assume that Cranmore Company completed the following note-payable transactions. Requirements 1. How much interest expense must be

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Assume that Cranmore Company completed the following note-payable transactions.

Requirements
1. How much interest expense must be accrued at December 31, 2012?
2. Determine the amount of Cranmoreâ€™s final payment on April 1, 2013.
3. How much interest expense will Cranmore report for 2012 and for 2013?

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Financial accounting

ISBN: 978-0132751124

9th edition

Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom

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Question Posted: Apr 22, 2013 01:31 AM

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Assume that Cranmore Company completed the following note-payable transactions. Requirements 1. How much interest expense must be

Question:

2012 Apr 1 Purchased delivery truck costing $85,000 by issuing a one-year, 8% note payable. Accrued interest on the note payable. Dec 31 2013 Apr Paid the note payable at maturity.

Step by Step Answer:

Req 1 Accrued interest Dec 31 2012 85000 08 912 ...View the full answer

Financial accounting

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