Ask Question
BusinessBusiness
8 November, 16:54

Saturn, Inc. signed a oneminusyear $ 36,000 note payable at 8 % interest on March 1, 2017. How much interest expense must be accrued on May 31, 2017? (Round any intermediate calculations to two decimal places, and your final answer to the nearest whole number

+1
Answers (1)
  1. 8 November, 19:57
    0
    May 31 2017 Interest expense 720 Dr

    Interest Payable 720 Cr

    Interest expense of 720 is accrued on May 31 2017.

    Explanation:

    The notes provides 8% interest rate which is the annual interest rate. The total interest on the one year note is 36000 * 0.08 = 2880 which is payable at the end of the term when the note payable is due. However, if the company prepares adjusting entry on a monthly basis or at the end of the period, it will record the interest expense that relates to that period and accrue it.

    Till may 31 2017, 3 months have passes and the interest for 3 months is accrued which comes out to be 2880 * 3/12 = $720
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Saturn, Inc. signed a oneminusyear $ 36,000 note payable at 8 % interest on March 1, 2017. How much interest expense must be accrued on May ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Janie obtains a 30-year 5/2 ARM at 3% with a 3/7 cap structure in the amount of $164,500. What is the monthly payment during the initial period? $456.94 $693.54 $780.08 $883.07
Answers (1)
Suppose you buy lunch for $16.60 that includes a 8% sales tax. How much did the restaurant charge you for the lunch (excluding any tax) and how much does the restaurant owe for sales tax?
Answers (1)
As the Toronto-based Four Seasons hotel chain remodels an existing hotel in Mumbai to bring it to the five-star hotels exacting standards, it is building a magnificent revolving restaurant overlooking the Arabian Sea at World.
Answers (1)
When an organization lacks policies, its operations become less predictable. Which of the following is a challenge you can expect without policies? a. Lower costsb. Increased regulatory compliance c. Customer dissatisfactiond.
Answers (1)
Temporary workers-often called temps-may not be subject to the contractual obligations or general policies that govern other employees. a. True b. False
Answers (1)
New Questions in Business
For February, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $96,000; advertising expenses are $90,000; shipping expenses total 2% of sales;
Answers (1)
Steven is going to purchase two stocks to form the initial holdings in his portfolio. Iron stock has an expected return of 25 percent, while Copper stock has an expected return of 19 percent.
Answers (1)
Continuous quality improvement depends heavily upon: Select one: a. hard work b. monitoring special causes of variance c. use of checklists d. employment of the PDCA cycle
Answers (1)
The difficulty in cost-benefit analysis is that the benefits are usually evident and easily measurable, while the costs are not always evident or measurable. A) True B) False
Answers (1)
What's the difference between price skimming and price penetration strategies?
Answers (1)
Home » Business » Saturn, Inc. signed a oneminusyear $ 36,000 note payable at 8 % interest on March 1, 2017. How much interest expense must be accrued on May 31, 2017?
Sign Up Forgot Password?