On September 1, 2020, Bramble Corp. issued a note payable to Fidelity Bank in the amount of $2736000, bearing interest at 12%, and payable in three equal annual principal payments of $912000. On this date, the bank's prime rate was 13%. The first payment for interest and principal was made on September 1, 2021. At December 31, 2021, Bramble should record accrued interest payable of $118560. $72960. $237120. $109440.
On September 1, 2020, Bramble Corp. issued a note payable to Fidelity Bank in the amount of $2736000, bearing interest at 12%, and payable in three equal annual principal payments of $912000. On this date, the bank's prime rate was 13%. The first payment for interest and principal was made on September 1, 2021. At December 31, 2021, Bramble should record accrued interest payable of $118560. $72960. $237120. $109440.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable
Section: Chapter Questions
Problem 30E
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On September 1, 2020, Bramble Corp. issued a note payable to Fidelity Bank in the amount of $2736000, bearing interest at 12%, and payable in three equal annual principal payments of $912000. On this date, the bank's prime rate was 13%. The first payment for interest and principal was made on September 1, 2021. At December 31, 2021, Bramble should record accrued interest payable of
$118560.
$72960.
$237120.
$109440.
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