Valix Finacc vol 2 Problem 1-11

Financial Accounting Volume 2 2008 Valix-Peralta
Chapter 1 Problem 1-11

Problem 1-11  Answer  B

Note payable, September 1, 2007                                                                                    1,800,000

Less: Payment on September 1, 2008                                                                      600,000

Balance, September 1, 2008                                                                                  1,200,000

Accrued interest payable from September 1 to December 31, 2008

            (1,200,000 x 12% x 4/12)                                                                                    48,000