JoJo Company signed a 18-month, non-interest-bearing note on October 31 for the purchase of $150,000 of merchandise. The face value of the note was $163,230. JoJo elects to use a discount account for the note. The appropriate interest rate JoJo usually pays is 6%. Note term 18 months Merchandise value $150,000 Face or Maturity value of note $163,230 On December 31, How much interest expense should JoJo show on the FYE income statement for the long term note?

Answer rating: 100% (QA)

To calculate the interest expense for JoJo Companys longterm note on December 31 you can use the eff... View the full answer