Assume that Coompany completed the following note-payable transactions. 2012 Oct

ID: 2708476 • Letter: A

Question

Assume that Coompany completed the following note-payable transactions.

2012

Oct1 Purchased delivery truck costin &88,000 by issuing a one-year, 8% note payable.

Dec31 Accrued interest on the note payable.

2013

Oct 1 Paid note payable at maturity

1. How much interest expense must be accrued at December 31, 2012? (round to the nearest whole dollar.)

The interest expense accrued at December 31, 2012 is $?

2. Determine the amount of Concert's final payment on October 1, 2013.

The amount of Concerts final payment on October1, 2013 is $?

3. How much interest expense will Concert report for 2012 and for 2013(round to the nearest whole dollar)

The company will report interest expense of $_____ in 2012 and $____ in 2013.

1,760 (88,000*.08*3/12)

88,000 + 88,000*.08= 95,040

1,760 and 5,280

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