Abardeen Corporation borrowed $140,000 from the bank on October 1, Year 1. The note had an 6 percent annual rate of interest and matured on March 31, Year 2. Interest and principal were paid in cash on the maturity date. Required a. What amount of cash did Abardeen pay for interest in Year 1? b. What amount of interest expense was recognized on the Year 1 income statement? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) c. What amount of total liabilities was reported on the December 31, Year 1, balance sheet? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.) d. What total amount of cash was paid to the bank on March 31, Year 2, for principal and interest? e. What amount of interest expense was reported on the Year 2 income statement? (Do not round intermediate calculations. Round your answer to the nearest dollar amount.)
Other questions asked by students
Accounting
1.2K views
Basic Math
1.2K views
A water trough is 8 m long and has a cross-section in the shape of an...
Finance
1.2K views
Mechanical Engineering
1.2K views
Biology
1.2K views
Physics
1.2K views
Accounting
1.2K views
Accounting
1.2K views
Accounting
1.2K views
Accounting
1.2K views