Assume that on July 1, 2021, Togo's Sandwiches issues a $2.02 million, one-year note. Interest is payable at maturity. Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions: (Enter your answers in dollars, not in millions. Do not round intermediate calculations. Round your answers to the nearest dollar amount.)

Interest Rate Fiscal Year-End Interest Expense

1. 8 % December 31

2. 9 % September 30

3. 6 % October 31

4. 7 % January 31

Question

Draven Mays

Business

19 December, 00:25

Assume that on July 1, 2021, Togo's Sandwiches issues a $2.02 million, one-year note. Interest is payable at maturity. Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions: (Enter your answers in dollars, not in millions. Do not round intermediate calculations. Round your answers to the nearest dollar amount.)

Interest Rate Fiscal Year-End Interest Expense

1. 8 % December 31

2. 9 % September 30

3. 6 % October 31

4. 7 % January 31

+2

Answers (1)

Know the Answer?

Angelina · Answer 1

1.$80,800

2.$45,450

3.$40,400

4.$82,483

Explanation:

Interest Rate Fiscal Year-End Interest Expense

1. 8 % December 31 2020000*8%*6/12 = $80,800

2. 9 % September 30 2020000*9%*3/12 = $45,450

3. 6 % October 31 2020000*6%*4/12 = $40,400

4 7 % January 31 2020000*7%*7/12 = $82,483