$1$

Exercise $8-5($Algo$)$ Determine interest expense $($LO$8-2)$

$25$ points

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References

References

GH Environmental provides cost$-$effective solutions for managing regulatory requirements and environmental needs specific to the airline industry. Assume that on July $1$ the company issues a one$-$year note for the amount of $$4\mathrm{.}2$ million. Interest is payable at maturity.

Required:

Determine the amount of interest expense that should be reported in the year$-$end income statement under each of the following independent assumptions: $($Enter your answers in dollars, not millions $($i$.$e$.5\mathrm{.}5$ million should be entered as $5,500,000).)$

$\backslash$table$[[,$Interest Rate,Fiscal Year$-$End,Interest Expense$],[1,12\%,$December $31,],[2,10\%,$September $30,],[3,9\%,$October $31,],[4.,6\%,$January $31,]]$

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$77F$

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