The Beatles Company only prepares financial statements on December 31, its year-end. The Beatles Company borrows $200,000 on July 1, 2019, from Sandwich State Bank by signing a $200,000, 12%,(annual rate) note that is due to be repaid in 9 months. (Therefore, On April 1, 2020, the amount borrowed plus interest is to be repaid). What is the amount of Interest Payable that Beatles will show on its December 31, 2019 balance sheet? $18,000 $24,000 $12,000 $0, since interest is paid in 2020 $2,000
The Beatles Company only prepares financial statements on December 31, its year-end. The Beatles Company borrows $200,000 on July 1, 2019, from Sandwich State Bank by signing a $200,000, 12%,(annual rate) note that is due to be repaid in 9 months. (Therefore, On April 1, 2020, the amount borrowed plus interest is to be repaid). What is the amount of Interest Payable that Beatles will show on its December 31, 2019 balance sheet? $18,000 $24,000 $12,000 $0, since interest is paid in 2020 $2,000
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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The Beatles Company only prepares financial statements on December 31, its year-end. The Beatles Company borrows $200,000 on July 1, 2019, from Sandwich State Bank by signing a $200,000, 12%,(annual rate) note that is due to be repaid in 9 months. (Therefore, On April 1, 2020, the amount borrowed plus interest is to be repaid). What is the amount of Interest Payable that Beatles will show on its December 31, 2019
$18,000 |
||
$24,000 |
||
$12,000 |
||
$0, since interest is paid in 2020 |
||
$2,000 |
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