On July 1, 2016, Ross-Livermore Industries issued nine-month notes in the amount of $400 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:

Transcribed Image Text:

Interest Rate 1. 1296 2. 10% 3. 4 Fiscal Year-End December 31 September 30 October 31 January 31 9% 6%