Assume that Carlton Sales Completed the following note-payable transaction 2014

Question

Assume that Carlton Sales Completed the following note-payable transaction

2014

April 1 Purchased delivery truck costing $54,000 by issuing a one-year, 6% note payable

Dec 31 Accured interest on the note payable

2015

April 1 Paid the note at payable at maturity

Requirements

1. How much interest expense must be accured at December 31, 2014? (Round your answer to the nearest whole dollar.)

The interest expense accured at December 31, 2014 is $

2.Determine the amount of Cartoon sales final payment on April 1, 2015

3. How much interest expense will Cartoon sales reoprt for 2014 and for 2015? (Round your answer to the nearest whole dollar).

Explanation / Answer

Answer 1. Interest expense accured at December 31, 2014 = $54000 X 6% X 9 Months / 12 Months = $2,430 Answer 2. Amount of Cartoon sales final payment on April 1, 2015 = $54000 + $3240 (Interest)        = $57240 Answer 3. interest expense will Cartoon sales reoprt for 2014 = $2430 interest expense will Cartoon sales reoprt for 2015 = $54000 X 6% X 3 Months / 12 Months      = $810

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