On October 1, 2017, Ealys Jewelers accepted a 4-month, 11% note for $6,000 in settlement of an overdue account receivable
The accounting period ends on December 31. Calculate the accrued interest on the note at December 31, 2017. (Round your answer to the nearest dollar.)
A) $165
B) $220
C) $660
D) $330
A .($6,000 x 11%) x 3/12 = $165
You might also like to view...
When supervisors follow the human resource staff's advice, they are no longer accountable for the outcomes of their decisions.
Indicate whether the statement is true or false.
Which of the following statements is true with respect to long-term liabilities?
a. They are obligations that will be satisfied within one year. b. An account payable is a good example of a long-term liability because it is interest-bearing. c. Long-term liabilities include bonds, other long-term liabilities and deferred income taxes. d. Accrued expenses are considered to be long-term liabilities.
Which sentence is expressed correctly?
A) Thirty four students were awarded scholarships. B) Thirtyfour students were awarded scholarships. C) Thirty-four students were awarded scholarships.
In the context of financial securities,certificates of deposit:
A. with longer maturities typically earn a higher interest rate than certificates of deposit that have shorter terms. B. can be cashed in before they mature without incurring any penalty. C. offer higher returns than most other types of investments. D. are not insured by theFederal Deposit Insurance Corporation, making them the least safe investment option.