Question
Asked Jan 28, 2020
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On July 1, 2016, Ross-Livermore Industries issued nine-month notes in the amount of $400 million. Interest is payable at maturity. Required: Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions: Interest Rate Fiscal Year-End 1. 12% December 31 2. 10% September 30 3. 9% October 31 4. 6% January 31

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Expert Answer

Step 1

The amount of interest expense to be recorded in a year-end adjusting entry under following independent situation are:

  1. Fiscal year – end is December – 31 (12%)
  2. Fiscal year ...

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