On July 1, 2018, 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:
.......................Interest Rate ...........................Fiscal Year-End
1.............................. 12% ..............................December 31
2............................... 10% ..............................September 30
3............................... 9%.............................. ....October 31
4............................... 6% ...................................January 31